Nazara Technologies shares surged by over 2% after the Supreme Court stayed the GST show cause notice amounting to Rs. 1.12 lakh crore.
This decision comes as a major relief for online gaming companies, as the show cause notice, issued by the Directorate General of GST Intelligence (DGGI), had raised a substantial tax demand against 71 gaming firms.
The tax demand, including penalties, could potentially reach up to Rs. 2.3 lakh crore. The dispute stems from a controversial amendment to the CGST Act in August 2023, which imposed a 28% GST on the “full face value” of entry amounts for online gaming transactions, applied retrospectively from 2017.
Earlier, the Karnataka High Court had quashed a Rs. 21,000 crore notice against Gameskraft in May 2023, which the Supreme Court stayed in September 2023. The latest Supreme Court ruling directs that all further proceedings under the notice remain on hold until the case is finally decided, providing relief to the gaming industry and boosting investor sentiment in companies like Nazara Technologies.
Nazara shares opened at ₹985.00, with a daily high of ₹1,077.00 and a low of ₹958.25. Over the past year, the stock has seen a 52-week high of ₹1,117.00 and a low of ₹591.50, showcasing a significant range of price movement.
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