In a groundbreaking move, GST authorities have issued show cause notices amounting to an astonishing Rs 1 lakh crore to online gaming behemoths, including notable names such as Dream11 and Delta Corp, over allegations of tax evasion.
These notices have been served in light of concerns regarding the underpayment of taxes, signaling a tectonic shift in the taxation landscape of the online gaming industry.
Ever since October 1, the Indian government has made it mandatory for foreign gaming companies to register in the country. As a consequence, these companies are now liable to pay a 28 percent Goods and Services Tax (GST) on the entire value of bets placed on online gaming platforms.
Despite some legal battles in response to these developments, the move underscores the significant transformation in the tax framework for the online gaming sector.
