The Karnataka HC had quashed a GST notice for tax evasion worth Rs 21,000 crore against the online gaming company. With the SC staying that order, the Central Board of Indirect Taxes and Customs is likely to issue a demand notice, said sources.
In September 2022, a GST intelligence unit issued a show-cause notice to Gameskraft Technology Private Ltd (GTPL), alleging that the company failed to pay Rs 21,000 crore in GST, the biggest such claim in the history of indirect taxation.
With the Supreme Court (SC) staying the Karnataka High Court's (HC) judgment quashing a goods and services tax (GST) notice against Bengaluru-based online gaming company Gameskraft Technology for alleged tax evasion worth Rs 21,000 crore, the Central Board of Indirect Taxes and Customs (CBIC) is likely to issue a demand notice with penalty soon, three senior government officials said.
The SC had, on September 6, stayed the Karnataka High Court judgment, issued in May 2023.
“Now, the CBIC will adjudicate. The assessing commissioner will take a call. The assessing officer will send the tax demand. Why would there be a delay? The only reason it was held back was because of the Karnataka High Court order. The demand notice will be sent now with a penalty,” a senior government official told Moneycontrol.
A mail to the Union finance ministry for comments received no reply till the time of publishing the report.
Source: https://shorturl.at/dQR46
