Nazara Technologies shares fall over 7% - Check details

Nazara Techn Share Price NSE, BSE: Nazara Technologies share price fell over 7 per cent on Thursday to Rs 845.65 after reports that its two subsidiaries have received a show cause notice and intimation for GST liability adding up to nearly Rs 1,120 crore. The counter opened with a loss of 7.32 per cent and touched an intraday low of Rs 845.65. This is a fall of 7.8 per cent from the previous close of Rs 923.20 on the BSE.

The scrip has a 52-week low of Rs 590.85 and a 52-week high of Rs 989.55. The company has a market cap of Rs 6,793 crore.

Openplay Technologies has received a show cause notice from the Director General of GST Intelligence, Kolkata for a proposed liability of Rs 845.72 crore, while in the case of another subsidiary - Halaplay Technologies - the liability amounts to Rs 274.21 crore.
Both the claims are for the period from 2017-18 to 2022-23.

The two subsidiaries are reviewing the notices with their legal counsels and tax advisors to determine their future course of action, Nazara said in a BSE filing.

"We wish to inform you of the following developments related to ongoing GST matters of the gaming industry on behalf of our subsidiaries...Openplay Technologies...Received a show cause notice on 16th July 2024 under Section 74(1) of the CGST Act, 2017, and the State SGST Act, 2017, from the Director General of GST Intelligence, Kolkata for a proposed liability of Rs 845.72 crore for the period from 2017-18 to 2022-23," Nazara said.

Last year, GST officers sent around 71 show cause notices to online gaming companies for alleged GST evasion of over Rs 1.12 lakh crore during financial years 2022-23 and 2023-24.

Many of them have gone to court against the notices and the cases are pending.

With PTI Inputs