E-gaming companies may have a stronger case to get their Goods and Services Tax liability reduced by the courts, with the GST Council’s decision that a 28% tax will apply on the full face value of bets only at the entry level, tax experts feel. These companies, including Bengaluru-based Gameskraft Technology Private Ltd (GTPL), are contesting past notices from the tax department, where the tax amounts were computed, requiring the tax to be applicable at the stage of every bet, and not just at the entry-level.
The Centre has filed a special leave petition (SLP) challenging the Karnataka high court order, which set aside a Rs 21,000 crore tax notice GTPL. According to sources, if 28% tax is applied only at the entry-level face value and not each time bets are placed and the subsequent winnings, then the tax liability on Gameskraft would come down to just Rs 5,000-6,000 crore.
Read more at : FINANCIAL EXPRESS
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