Dream11 Approaches Bombay HC Against GST Evasion Notice: Report The notice was for the period between 2017 and June 30, 2022

By Teena Jose

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The Directorate General of GST Intelligence (DGGI) has reportedly sent out a dozen pre-show cause notices to online real money gaming (RMG) companies over alleged goods and services tax (GST) evasion of about INR 55,000 crore. It was earlier reported that a GST notice of over INR 25,000 crore has been sent to fantasy sports platform Dream11, led by Harsh Jain, which makes it possibly the largest indirect tax notice served in the country.

With regard to this action, Dream11 parent Dream Sports (Sporta Technologies Private Limited) has filed a writ petition in the Bombay High Court challenging the show cause notice issued by the tax authorities for alleged GST evasion and not paying 28% GST on the face value of bets, according to a Moneycontrol report.

People familiar with the matter told Moneycontrol that the claims against the Mumbai-based firm would nearly double the amount, to around INR 40,000 crore, whereas the ET had amounted it at INR 25,000 crore.

Currently, the INR 21,000 crore show cause notice issued to Bengaluru-based Gameskraft is reportedly said to be the biggest such claim.

As per available sources, Fantasy sports major Dream11 posted a net profit of INR 142 crore on operating revenue of INR 3,841 crore in FY22.

Reportedly, Play Games24x7 and its affiliates, including RummyCircle and My11Circle, have been served a notice seeking GST dues of INR 20,000 crore while Head Digital Works has been served with a pre-show cause notice of over INR 5,000 crore.

Previously, the largest such demand at INR 21,000 crore, was sent to Bangalore-based Gameskraft Technology, in which the Supreme Court on September 6 stayed Karnataka High Court's judgment,

The notice was for the period between 2017 and June 30, 2022.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.

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