Nazara Technologies shares drop over 5% as two subsidiaries face Rs 1,120 crore GST liability notices.
Openplay and Halaplay Technologies received GST notices for Rs 845.72 crore and Rs 274.21 crore, respectively.
The impacted subsidiaries contributed less than 2% of Nazara Tech's revenues and less than 1% of profit for Q1 2024.
The GST claims are based on sums pooled by players rather than gross gaming revenues, leading to the disputed liability.
Several gaming firms, including Dream Sports and Gameskraft, face similar GST notices for alleged tax evasion over Rs 1 lakh crore.
Nazara Tech shares are down 4.8% at Rs 880 on NSE. Despite a 2% rise this year, it underperformed Nifty’s 13% gain.
The GST Council clarified a 28% tax on the full value of bets on online gaming platforms, impacting the industry significantly.