Nazara Technologies faces a potential tax bill of Rs 1,120 crore

The notices, issued on July 16, allege GST liabilities of ₹845.72 crore and ₹274.21 crore respectively, for the period 2017-18 to 2022-23.

By  Storyboard18Jul 19, 2024 5:03 PM
Nazara Technologies faces a potential tax bill of Rs 1,120 crore
Nazara believes GST should be based on "pooled player sums" rather than total gaming revenue.(Representative Image via Unsplash)

Indian gaming and sports company Nazara Technologies faces a potential tax bill of Rs 1,120 crore after its subsidiaries, Openplay Technologies and Halaplay Technologies, received show cause notices from the Director General of GST Intelligence in Kolkata. The notices, issued on July 16, allege GST liabilities of Rs 845.72 crore and Rs 274.21 crore respectively, for the period 2017-18 to 2022-23.

The dispute revolves around calculating Goods and Services Tax (GST). Nazara believes GST should be based on "pooled player sums" rather than total gaming revenue. The company is consulting legal and tax advisors to determine their next move. Financially, the impact seems minimal, with the affected subsidiaries contributing less than 2% of Nazara's revenue and 1% of its profit in the last quarter (January-March 2024).

These claims are in relation to the calculation of GST based on the sums pooled by players as opposed to gross gaming revenues, the company filing said in response to the show cause notices sent to its subsidiaries. "Both subsidiaries are reviewing the notices with their legal counsels and tax advisors to determine their future course of action," it said further.


Tags
First Published on Jul 19, 2024 2:52 PM

More from Storyboard18

How it Works

Brands that prioritize social impact grow 37% faster in revenue, reveals study

Brands that prioritize social impact grow 37% faster in revenue, reveals study

How it Works

ChatGPT data stored outside India, copyright act does not apply in ANI case: OpenAI to Delhi HC

ChatGPT data stored outside India, copyright act does not apply in ANI case: OpenAI to Delhi HC

How it Works

Hiring activity surges in IPO-bound firms; Meesho, Zepto, others add 15,500 employees in 12 months

Hiring activity surges in IPO-bound firms; Meesho, Zepto, others add 15,500 employees in 12 months

How it Works

Creative control or creative caution? What’s really driving content choices on Indian OTTs

Creative control or creative caution? What’s really driving content choices on Indian OTTs

How it Works

Ad, Media and PR industry sees 8% rise in hiring in Feb 2025: Naukri

Ad, Media and PR industry sees 8% rise in hiring in Feb 2025: Naukri

How it Works

India’s media ‘Does not need foreign validation,’ says I&B Ministry

India’s media ‘Does not need foreign validation,’ says I&B Ministry

How it Works

CCI raids could accelerate shift from “media muscle” to “strategic agility”, writes indie ad agency Famous Innovations founder

CCI raids could accelerate shift from “media muscle” to “strategic agility”, writes indie ad agency Famous Innovations founder

How it Works

Breaking News Dominates Viewer Engagement: BrandPulse Report

Breaking News Dominates Viewer Engagement: BrandPulse Report