In recent weeks, several online gaming companies, including Dream11 and Gameskraft, have faced scrutiny over alleged tax evasion.
According to government sources, show-cause notices amounting to approximately ₹1 lakh crore have been issued to multiple online gaming firms for suspected underpayment of taxes. The government’s efforts to regulate the industry have intensified following the implementation of a 28 percent Goods and Services Tax (GST) on the total value of bets placed on online gaming platforms in August.
This move aims to ensure that offshore gaming companies also register in India and adhere to domestic tax laws. Notably, Delta Corp and GamesKraft have previously received significant tax notices, amounting to several thousand crores. Despite these measures, there is a lack of data on the registration of foreign gaming companies in India since October 1, suggesting potential compliance issues within the sector. The government’s actions reflect its determination to enforce tax compliance and strengthen oversight within the online gaming industry.
Image Source: https://www.telegraphindia.com/business/government-may-collect-rs-26000-crore-as-taxes-over-five-years-from-online-gaming-industry/cid/1940362
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