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The Supreme Court has directed that all further proceedings under the show cause notice will remain stayed till the case is finally decided.
The gaming industry had sought a stay on the GST show cause notices, flagging concerns of possible coercive action by tax authorities under the show cause notices.
The DGGI had raised tax demands worth ₹1.12 lakh crore against 71 online gaming companies. Adding penalties, the tax demand could soar to ₹2.3 lakh crore.
In August 2023, an amendment to the CGST Act had provided a 28% tax on “full face value” of the entry amount and the amendment was applied retrospectively from 2017, with show cause notices being issued to the industry. Gaming companies subsequently challenged these orders.
In May 2023, the Karnataka High Court had quashed notices worth ₹21,000 crore issued to Gameskraft. The Karnataka High Court order was stayed by the Supreme Court in September 2023.
Shares of Delta Corp are off the highs after the initial spurt post the newsbreak, currently trading 4.5% higher at ₹118.38. The stock is no longer an F&O stock.
However, shares of Nazara Tech too cooled off soon after an initial spurt, and is currently trading 0.6% lower at ₹985.
First Published: Jan 10, 2025 11:51 AM IST