Other gaming companies that were sent such show cause notices for shortfall in GST payments, include
The Union
The Central government has clarified to the states that the GST on online gaming companies is not being levied retrospectively since some online games involved in betting were already being charged a 28% GST under the law earlier.
The Centre made the clarification as some states such as Goa had claimed that the 28% GST on online gaming companies was being levied retrospectively.
A number of online gaming companies were issued show-cause notices earlier for allegedly evading GST with cumulative amount adding up to Rs 55,000 crore.
Many have termed this as retrospective taxation claiming that the notices pertain to the period before the October 1 implementation date for a new tax treatment for gaming platforms.
"It was informed to certain members that this is not retrospective and this was the law earlier. These liabilities were already existing because money online games played with bets. ..they were already attracting by way of betting or gambling 28% GST," Revenue Secretary Sanjay Malhotra had said in answer to a question at a press conference after the meeting.
Chhattisgarh Deputy Chief Minister T.S. Singh Deo also said that the Council discussed the issue of retrospectively taxing online gaming under the indirect tax regime with the dues being demanded from some firms exceeding their turnover.