gameskraft technology: GST authorities issue notice to Gameskraft, seek Rs 21,000 crore

The Items and Providers Tax authorities have served a present trigger discover to Bengaluru-based on-line gaming firm Gameskraft Expertise Pvt Ltd, demanding Rs 21,000 crore in taxes, curiosity and penalty, the corporate mentioned in a submission to the Karnataka Excessive Court docket.

The court docket has stayed the discover and can hear the matter after Dussehra holidays.

Final yr in December, the GST authorities had carried out a search on the premises of the corporate and connected its property and financial institution accounts, alleging a tax evasion to the tune of Rs 460 crore.

The corporate filed an attraction in opposition to the demand and attachment of its property and financial institution accounts.

The authorities have now issued a contemporary present trigger discover, the corporate mentioned, searching for the court docket’s intervention.

“The entire GST demanded within the impugned intimation discover is near Rs 21,000 crore (plus curiosity and penalty) in opposition to the full revenue earned by the petitioner from 2017 to 2022, which is little greater than ?4,000 crore,” the corporate mentioned in its submission, referring to the September 8 discover from the GST authorities.

The tax was calculated by making use of a GST charge of 28%.

“We’re assured that we can reply to this discover to the total satisfaction of the authorities since they’ve sought to use 28% tax relevant to video games of likelihood and lottery, as an alternative of the 18% relevant to on-line platforms of video games of talent,” a Gameskraft spokesperson mentioned.

The spokesperson added that as a accountable startup with Unicorn standing within the on-line talent gaming sector, the corporate has discharged its GST and income-tax liabilities as per customary trade follow.

The corporate has additionally informed the court docket that the discover has been issued by an officer not having jurisdiction.