Gameskraft Technology Private has been charged with failing to pay GST (goods and services tax) of Rs 21,000 crore and the show cause notice relates to the period between 2017 and June 30, 2022.
The Directorate General of GST Intelligence (DGGI) has issued the largest indirect tax show cause notice in history to a Bengaluru-based online gaming company, Gameskraft Technology Private Ltd (GTPL), reported CNN News 18.
The company has been accused of failing to pay GST (goods and services tax) of Rs 21,000 crore and the show cause notice relates to the period between 2017 and June 30, 2022.
Gameskraft Technology has been accused of promoting online betting through card, casual and fantasy games like Rummy Culture, Gamezy, Rummy Time, etc. and DGGI imposed a 28% tax on bet amounts of almost Rs 77,000 crore.
According to the DGGI report, GTPL engaged in betting by allowing its players to place bets in the form of cash bets and it allowed betting on the outcome of card games played online.
During the investigation, DGGI discovered that Gameskraft did not issue any invoices to its customers and submitted false/overdue invoices, which were detected by forensic examination.
Additionally, DGGI said the company urges its customers to gamble because there is no way back once the money has been added to the wallet.
Gameskraft was launched in 2017 by a group of passionate gamers to delight the Indian gaming community with skill-based games.