Gaming company in Bengaluru receives the largest GST notice of Rs 21,000 crore

Gameskraft Technology accused of failing to pay GST of Rs 21,000 crore between 2017 and 2022 . Game giant accused of marketing online betting through their card, casual, and fantasy game offerings .

Gameskraft Technology, a Bengaluru-based gaming company, has been accused of failing to pay GST of Rs 21,000 crore between 2017 and June 30, 2022.According to sources, Gameskraft now has the ambiguous distinction of being charged by the Directorate General of GST Intelligence (DGGI) with the biggest indirect tax show-cause notice in history.Gameskraft, which was established in 2017 by a group of gamers, offers web and mobile-based real-money games such as Rummy Culture, Gamezy, and Rummy Time in which players can place bets.The DGGI accused the gaming giant of marketing online betting through their card, casual, and fantasy game offerings, and said Rs 77,000 crore in bet amounts placed between 2017 and June 30, 2022 were subject to a 28 percent levy.

According to a DGGI article, Gameskraft is a betting company.Rummy is a one-time skill game that is categorized as horse racing, bridge, and fantasy.According to a Gameskraft spokesperson, the notice is a departure from the already established statute of the land.We have carried out our GST and income tax obligations as per standard industry practice, which is now over a decade old, according to the spokesperson.Since the authorities decided to charge 28% tax on games of chance and lottery rather than the 18% that would be levied on online gaming platforms, we are confident that we will be able to respond to this notice to their full satisfaction.

The DGGI said that its forensic examination revealed that the gaming company refused to issue invoices to customers and submitted false or overdue invoices in other cases.Users have no way to withdraw their funds once they top up their Gameskraft wallet, according to the law enforcement department.

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