GST authorities issue a show cause notice to gaming startup Gameskraft for INR 21,000 crore

The Directorate General of GST Intelligence (DGGI) issued the largest-ever show cause notice to Gameskraft Technology, an online gaming startup.

The INR 21,000 Cr tax notice alleges indirect tax evasion on a bet amount of INR 77,000 Cr between 2017 and June 2022. The company has been asked to provide tax authorities with back-dated invoices. While the government has imposed a 28% GST rate, the company claims that rummy is a skill game and thus only requires an 18% GST rate.