𝗗𝗢𝗨𝗕𝗟𝗘 𝗧𝗥𝗢𝗨𝗕𝗟𝗘...!! and that's not a good sign of Simple Taxation!! 𝗜𝗻𝗰𝗼𝗺𝗲 𝗧𝗮𝘅 𝗗𝗲𝗽𝗮𝗿𝘁𝗺𝗲𝗻𝘁 𝗜𝘀𝘀𝘂𝗲𝘀 𝗘𝘅𝗼𝗿𝗯𝗶𝘁𝗮𝗻𝘁 𝗡𝗼𝘁𝗶𝗰𝗲𝘀 𝘁𝗼 𝗢𝗻𝗹𝗶𝗻𝗲 𝗚𝗮𝗺𝗶𝗻𝗴 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗳𝗼𝗿 𝗚𝗦𝗧 𝗘𝘃𝗮𝘀𝗶𝗼𝗻..!

The Income Tax Department has recently issued show-cause notices amounting to a total of Rs 55,000 crore to several online gaming companies for allegedly evading dues related to the Goods and Services Tax (GST).

These demands date back to as early as 2017, raising concerns about the possible resurgence of retrospective taxation in India.

Experts have compared this situation to the infamous Vodafone tax issue, where the Indian government faced legal and arbitration battles over retrospective tax demands. The demands against the online gaming companies are based on a stretched interpretation of the GST law.

Although the law amendments are prospective, the notices issued pertain to the period prior to the implementation date of October 1, 2023. This has led to speculation that a retrospective approach may have been adopted.

The demands raised against the gaming companies far exceed the sector’s total income, raising questions about the validity of the claims What are your views, Please share in the comments.