Nazara Technologies gets GST notice of Rs 1,120 crore
Nazara disclosed that these claims relate to the calculation of GST based on the sums pooled by players rather than on gross gaming revenues.
NEW DELHI: Two subsidiaries of gaming firm Nazara Technologies have received notices nearly Rs 1,120 crore the Goods and Services Tax (GST) in retrospectively for the period from FY18 to FY23. According to a stock exchange filing by Nazara Technologies on Wednesday revealed that Openplay faces a liability of Rs 845.72 crore, while Halaplay is required to pay Rs 274.21 crore.
Nazara disclosed that these claims relate to the calculation of GST based on the sums pooled by players rather than on gross gaming revenues. “Both subsidiaries are reviewing the notices with their legal counsels and tax advisors to determine their future course of action,” said Nazara.
In August 2021, Nazara Technologies acquired a 100% stake in OpenPlay, a Hyderabad-based skill gaming company, for Rs 186.4 crore. The acquisition of Halaplay was carried out through several investment rounds. Nazara also reported that these subsidiaries together accounted for less than 2% of the company’s revenues and less than 1% of its profits for the quarter ending March 2024. For Q1 FY25, Nazara Technologies reported total revenue of Rs 254.43 crore and a profit of Rs 17.8 crore.
In FY24, Nazara Technologies saw a 4.3% increase in revenue from operations, rising to Rs 1,138 crore from Rs 1,091 crore in FY23. Despite the modest revenue growth, the company managed to achieve a 23% increase in profit, which reached Rs 75 crore in FY24 compared to Rs 61 crore in FY23, thanks to controlled costs and a significant rise in other income.
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