SUMMARY
- Openplay Technologies, a subsidiary of Nazara Technologies, receives interim relief from the Calcutta HC in the ₹845.7 Cr GST notice case.
- The court has directed that no orders related to the GST notice be enforced by tax authorities.
- This relief follows tax notices issued earlier to Nazara’s subsidiaries, totaling ₹1,119.93 Cr.
Nazara Technologies’ subsidiary, Openplay Technologies, has secured interim relief from the Calcutta High Court (HC) in the ongoing ₹845.7 Cr goods and services tax (GST) notice case issued by West Bengal GST authorities. In an official exchange filing, Nazara Technologies stated that the High Court has instructed the authorities not to enforce any orders in relation to the show cause notice issued by the Director General of GST Intelligence (DGGI), Kolkata.
This temporary reprieve comes after the GST department served tax notices amounting to a combined ₹1,119.93 Cr to both Openplay and Nazara’s other subsidiary, Halaplay Technologies Pvt. Ltd., earlier this year. The notice targeted the two subsidiaries for their operations in the online gaming sector, which has been under intense scrutiny by tax authorities due to ambiguity in tax classification.
The core of the legal battle revolves around the interpretation of tax rates applied to online gaming transactions. The authorities have alleged that Nazara’s gaming platforms did not comply with GST norms, leading to the issuance of hefty tax demands. The subsidiaries, however, have contested the claims, arguing that their operations are compliant with existing laws.
As the case progresses, this interim relief grants Openplay the ability to continue its business without immediate financial pressure from the massive tax demands. The decision by the High Court will provide the company and its stakeholders a temporary breather while the matter is deliberated further.
