Nazara Technologies Faces Rs 1,120 Cr GST Demand Notices On Subsidiaries
Enforcement action by DGGI prompts regulatory challenge for gaming and sports media giant, pledges legal contestation amidst market apprehension
Nazara Technologies, a gaming and sports media platform, reported on Thursday that two of its companies had received Goods and Services Tax (GST) demand notifications for Rs 1,120 crore. These notifications were issued by the Directorate General of GST Intelligence (DGGI), an enforcement department of the Central Board of Indirect Taxes and Customs (CBIC). The demand notifications address alleged GST payment irregularities spanning the period from July 2017 to March 2022.
According to a regulatory filing by Nazara Technologies, GST demand notifications were sent to its subsidiaries HalaPlay Technologies and OpenPlay Technologies. The notice against HalaPlay Technologies is for Rs 600.99 crore, while OpenPlay Technologies has been slapped with a notice for Rs 519.30 crore. The cumulative figure of Rs 1,120 crore has caused major worry inside the firm and the wider market.
Nazara Technologies indicated that they are presently seeking legal assistance to handle the notices and intend to dispute the requests. The business emphasised its dedication to compliance and openness in all financial concerns, promising stakeholders that it will exhaust all legal options to remedy the situation.
The market reacted to the announcement by lowering Nazara Technologies' stock price, indicating investor concern about the possible financial impact of the GST demand. The company's shares fell after the news, highlighting the considerable impact that regulatory problems may have on market sentiment.
Nazara Technologies, recognised for its diversified portfolio in the gaming and sports media industries, is still navigating the hurdles of regulatory compliance in India. The company's management is committed to minimising the situation and protecting the interests of its stakeholders throughout the process.
As the scenario evolves, Nazara Technologies has vowed to keep the market updated on any important developments involving the GST demand notice. The company's proactive strategy to seeking legal guidance, as well as its commitment to dealing with the matter in a transparent manner, are intended to retain investor trust in the face of continuous regulatory scrutiny.
