The Directorate General of GST Intelligence (DGGI) has reportedly issued pre-show cause notices to several real-money gaming (RMG) firms, including the prominent platform Dream11, for alleged goods and services tax (GST) dues totaling approximately Rs 55,000 crore, according to media reports. This substantial sum includes a GST notice of around Rs 25,000 crore directed at Dream11, a leading fantasy sports platform. Other firms such as PlayGames24x7 Pvt Ltd and Head Digital Works Pvt Ltd were also reportedly served with similar notices, as per sources cited in The Economic Times.
According to The Economic Times, the aggregate GST demand issued by DGGI to RMG companies across the country may potentially reach an astonishing Rs 1 lakh crore.
This action by DGGI arrives in the wake of revised GST rates for real-money gaming companies, which were adjusted to 28% on the total bets placed at the entry-level. These revised rates came into effect on October 1, although the GST Council has expressed a willingness to reconsider these tax slabs after a six-month period. The decision to hike GST rates has been met with protests from several gaming firms.
Earlier this year, the Karnataka High Court had dismissed a GST notice issued to Gameskraft, a Bengaluru-based real-money gaming firm, totaling Rs 21,000 crore. This claim, deemed the highest ever in the history of indirect taxation, was later stayed by the Supreme Court in September.
