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

Sun TV Network’s Kal Radio gets NCLT approval for Udaya FM amalgamation

Sun TV Network’s Kal Radio gets NCLT approval for Udaya FM amalgamation

How it Works

Sports AdEx up 7% in 2024 to reach Rs 7,989 cr: GroupM

Sports AdEx up 7% in 2024 to reach Rs 7,989 cr: GroupM

How it Works

India’s express logistics market poised for rapid growth, to hit 24-29 billion shipments by FY 2030: Redseer Report

India’s express logistics market poised for rapid growth, to hit 24-29 billion shipments by FY 2030: Redseer Report

How it Works

Zomato's AI push leads to 600 job cuts in customer support: Report

Zomato's AI push leads to 600 job cuts in customer support: Report

How it Works

SEBI targets misleading finfluencers, AMFI's role under the microscope

SEBI targets misleading finfluencers, AMFI's role under the microscope

How it Works

CCI crackdown on major media agencies may spur advertisers' shift to 'hybrid in-housing'

CCI crackdown on major media agencies may spur advertisers' shift to 'hybrid in-housing'

Brand Makers

Breaking: Gandhi family ends feud, restructures and merges Vadilal empire

Breaking: Gandhi family ends feud, restructures and merges Vadilal empire

How it Works

TV ad market down 6%, fewer ads, 12% brand drop cited: Report

TV ad market down 6%, fewer ads, 12% brand drop cited: Report