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Nazara’s subsidiary gets interim relief by Calcutta High Court in GST dispute

YourStory · 3h

- Calcutta High Court grants interim relief to Openplay Technologies, a subsidiary of Nazara Technologies, against a show cause notice issued by the Director General of GST Intelligence, Kolkata. - Openplay received a notice for a liability of Rs 845.72 crore, while Halaplay Technologies, another subsidiary of Nazara, received a notice for a liability of Rs 274.21 crore. - The subsidiaries are challenging the demand and disputing the GST calculation method, arguing for it to be based on gross gaming revenue rather than the player pool contribution. - Openplay and Halaplay contribute less than 2% of Nazara's revenue and 1% of its profit in the quarter ending March 2024. - GST Council implemented a higher 28% tax rate on the total contest entry amounts for online gaming, casinos, and horse racing in 2023. - In the previous year, 71 show cause notices were issued to online gaming companies for alleged GST evasion exceeding Rs 1.12 lakh crore during the financial years 2022-23 and 2023-24.