The tussle over Rs 21,000 crore GST notice issued to Gameskraft continues. A few days ago, the Supreme Court made an unexpected decision to put a stay on the Karnataka High Court’s (HC) judgement quashing the GST department’s show-cause notice worth Rs 21,000 crore to GamesKraft, a Bengaluru-based online gaming company that was formed in 2017. The firm made a debut with RummyCulture and has had a huge growth, garnering more than 3 Lac subscribers on its platforms.
Accused of failing to pay taxes and of fabricating false and back-dated invoices for its customers, the company was slapped with a show-cause notice worth Rs 21,000 Crore. It was the biggest tax notice issued to any company till date. In response to the tax notice, Gameskraft then filed a plea in the Karnataka High Court. After lengthy hearings, the Karnataka HC quashed the show-cause notice.
However, with things back in motion, the Central Board of Indirect Taxes and Customs (CBIC) is likely to issue a demand notice with a penalty. As per authorities, the CBIC will step in to take future calls.
“The assessing commissioner will take a call. The assessing officer will send the tax demand. Why would there be a delay? The only reason it was held back was because of the Karnataka High Court order. The demand notice will be sent now with a penalty,” an official said as quoted by Moneycontrol. For further details on the matter, you can check out the Moneycontrol website.