Nazara Technologies Faces GST Demand of Nearly Rs. 1,120 Crore
Nazara Technologies announced that two of its subsidiaries, Openplay Technologies and Halaplay Technologies, have received show cause notices and GST liability demands totaling approximately Rs. 1,120 crore.
* Openplay Technologies received a notice for Rs. 845.72 crore while Halaplay Technologies received a notice for Rs. 274.21 crore.
* Both notices were issued by the Director General of GST Intelligence, Kolkata, for the period 2017-18 to 2022-23.
The subsidiaries are reviewing the notices and will consult with tax and legal advisors to determine their next steps.
Details of the GST Liability
The GST demand relates to the calculation of GST on the sums collected by players instead of gross gaming revenues. Nazara Tech confirmed that the affected subsidiaries accounted for less than 2% of the parent company’s revenue and less than 1% of its profit in the January-March 2024 quarter.
Background
In August 2022, the GST Council imposed a 28% tax on the full value of bets placed on online gaming platforms. This tax was levied in an effort to regulate the online gaming industry.
