In a significant development, Nazara Technologies‘ subsidiary, Openplay Technologies, has secured interim relief from the Calcutta High Court regarding the massive INR 845.7 Cr tax notice issued by the West Bengal Goods and Services Tax (GST) authorities. The online gaming giant, through an exchange filing, revealed that the High Court has instructed the GST Intelligence office in Kolkata to hold off on enforcing any orders related to the show-cause notice issued to the company.
The relief comes two months after Nazara’s subsidiaries, Openplay Technologies and Halaplay Technologies Pvt Ltd, were slapped with tax notices totaling INR 1,119.93 Cr by the Directorate General of GST Intelligence (DGGI), Kolkata. The notices were related to the alleged non-payment of GST on the revenues generated by their online gaming platforms.
The court’s direction provides a temporary reprieve to Openplay and Halaplay, allowing them to continue operations while the legal proceedings are ongoing. The next steps in this case will likely involve further hearings and a deeper examination of the tax claims.
Nazara Technologies had previously indicated its commitment to resolving the matter through legal channels, and the interim relief marks an essential first step in navigating this complex tax dispute. Industry insiders view the case as a potential landmark for online gaming platforms facing regulatory scrutiny.
Nazara Technologies is known for its diversified portfolio of gaming platforms, e-sports, and interactive gaming, and this case could have significant ramifications for the taxation of digital services in India’s booming gaming industry.
Key Highlights:
- Openplay Technologies, a Nazara subsidiary, has received interim relief from Calcutta HC against an INR 845.7 Cr tax notice.
- The court ruled that no actions can be taken regarding the notice issued by GST Intelligence, Kolkata, at this stage.
- The total tax notices against Nazara’s two subsidiaries amount to INR 1,119.93 Cr.