Nazara Technologies shares rose over 2% despite getting slapped with a GST show-cause notice and tax demand. 

Several other gaming and sports media companies, including Dream11 and Delta Corp, have been slammed with huge GST notices this month, some even bigger than the company’s market capitalisation. However, this tax demand is not related to the issue of retrospective taxation on the real-money gaming sector.

The Rekha Jhunjhunwala and Nikhil Kamath-backed Nazara Technologies said in an exchange filing on September 27 that it has received a show cause notice for a tax demand of Rs 2.83 crore along with interest and penalty under sections of the Central GST Act and Integrated GST Act, 2017 from the Director General of GST Intelligence, Mumbai.

The notice is concerning the export of services under a letter of undertaking without paying the Goods and Services Tax (GST) on the export proceeds. Nazara has not received the proceeds from the export of services due to some unforeseen and uncontrollable events classified as a “force majeure,” it said in the filing. 

At 02:55 pm, shares of Nazara Technologies were trading at Rs 840.10, up 1.52% from the last closing price on the National Stock Exchange (NSE). The scrip jumped 2.03% to reach an intraday of Rs 844.40.