GST Intelligence slaps biggest ever show cause notice, tax worth crores on Bengaluru-based online gaming company

New Delhi: In what appears to be the biggest show cause notice ever in the history of indirect taxation, a Bengaluru-based online startup has been slapped with one such notice according to a report by CNN.

The notice has been served on the pretext of the company not paying the Goods and Services Tax (GST) worth Rs 21,000 crore. The company has been identified as Gameskraft Technology (GTPL).

The report further says that the company has also been found accused of promoting online betting “through card, casual and fantasy games such as Rummy Culture, Gamezy, Rummy Time etc.” GTPL was also found accused of not providing its consumers with any invoices.

The tax authorities have also slapped the firm with a 28 per cent tax on betting amount of approximately Rs 77,000 crore.

“GTPL was engaged in the betting by allowing its players/gamers to place bets in the form of money stakes on the outcome of card games played online”, the intelligence said.

The show cause notice has reportedly been issued for the period between the year 2017 and June 30, 2022.