Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 319

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 319
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 GST paid to suppliers against their output GST liabilities. Net GST balance between input GST and output GST is recorded
in tax payable or receivable.

<div align='center'>F-72

GCL GLOBAL LIMITED AND ITS SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</div>

The
Company accounts for income taxes in accordance with ASC 740, Income tax . The charge for taxation is based on the results for the
fiscal year and adjusted for items, which are non-assessable or disallowed. It is calculated using tax rates that have been enacted or
substantively enacted by the balance sheet date

Deferred
tax is calculated using the balance sheet liability method in respect of temporary differences arising from differences between the carrying
amount of assets and liabilities in the unaudited condensed consolidated financial statements and the corresponding tax basis. In principle,
deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized to the extent that
it is more likely than not that taxable income will be utilized with prior net operating loss carried forwards using tax rates that are
expected to apply to the period when the asset is realized or the liability is settled. Deferred tax is charged or credited in the income
statement, except when it is related to items credited or charged directly to equity. Deferred tax assets are reduced by a valuation
allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not
be utilized. Current income taxes are provided for in accordance with the laws of the relevant tax authorities.

An
uncertain tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained
in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that
is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test,
no tax benefit is recorded. No penalties and interest were incurred related to underpayment of income tax for the six months ended September 30,
2024 and 2023.

The
Company recognizes interest and penalties related to unrecognized tax benefits, if any, on the other expense line in the accompanying
consolidated statement of income. Accrued interest and penalties are included on the other payables and accrued liabilities line in the
consolidated balance sheets.

The
Company