80 Online Gaming Companies Likely to Face GST Evasion Notice for ₹10,000-12,000 Crore

About 80 online gaming companies in India are likely to face tax notices for alleged GST evasion of ₹10,000-12,000 crore.
The investigation wing of the Directorate General of GST Intelligence (DGGI) is issuing notices to gamers operating in India and abroad, with total evasion estimated to be over ₹31,000 crore.
These gaming firms allegedly evaded paying the 28% GST rate on their gross gaming revenue.
Notices have been issued for a tax demand of ₹22,000 crore, including ₹21,000 crore on Bengaluru-based online gaming company Gameskraft Technology.
The Karnataka High Court quashed the notice on Gameskraft, but the revenue department challenged the decision.
The Supreme Court has stayed the High Court ruling and will hear the matter later this month or early next month.
The DGGI is also cracking down on casino operators for alleged non-payment of tax.
Delta Corp received a tax notice for ₹11,139 crore for allegedly not paying GST on the gross bet value.
The new rule clarifies that tax will be imposed on the money paid by users to online games, regardless of whether they are games of skill or chance.
A comprehensive review will be done six months after the implementation of the new rule.