Online gaming companies get tax notices worth Rs 1 lakh crore

India's online gaming industry has received show-cause notices amounting to Rs. 1 lakh crore say sources. The notices come even as the industry has raised concerns on the applicable GST Rates.

The government has asserted that a 28 percent GST rate should have been in place starting from October 1, as per the law.

In August 2023, the GST Council amended the law, making it explicit that all online games involving bets, regardless of skill or chance, would be subject to a 28 percent GST rate on the full value of the bets placed, effective from October 1. This clarification aimed to close any potential loopholes.