Rs. 1120 Cr GST Notice for Indian Gaming Companies!

Nazara Technologies shares drop over 5% as two subsidiaries face Rs 1,120 crore GST liability notices.

Subsidiaries Face GST Notices

Openplay and Halaplay Technologies received GST notices for Rs 845.72 crore and Rs 274.21 crore, respectively.

Revenue Impact Minimal

The impacted subsidiaries contributed less than 2% of Nazara Tech's revenues and less than 1% of profit for Q1 2024.

GST Calculation Dispute

The GST claims are based on sums pooled by players rather than gross gaming revenues, leading to the disputed liability.

Industry-Wide Issue

Several gaming firms, including Dream Sports and Gameskraft, face similar GST notices for alleged tax evasion over Rs 1 lakh crore.

Stock Performance

Nazara Tech shares are down 4.8% at Rs 880 on NSE. Despite a 2% rise this year, it underperformed Nifty’s 13% gain.

GST Clarification

The GST Council clarified a 28% tax on the full value of bets on online gaming platforms, impacting the industry significantly.