DGGI sends GST evasion notices of ₹28,000 crore to Dream11, ₹21,000 crore to Play Games 24X7: Reports | Mint
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Business News/ Companies / DGGI sends GST evasion notices of 28,000 crore to Dream11, 21,000 crore to Play Games 24X7: Reports
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DGGI sends GST evasion notices of ₹28,000 crore to Dream11, ₹21,000 crore to Play Games 24X7: Reports

The development comes after Dream11 moved the Bombay High Court against the tax evasion notice issued by the Maharashtra GST authority.

The GST Council, in its last meeting, approved a tax rate of 28 percent on the entire nominal value for real-money gaming transactions. (HT_PRINT)Premium
The GST Council, in its last meeting, approved a tax rate of 28 percent on the entire nominal value for real-money gaming transactions. (HT_PRINT)

The Directorate General of GST Intelligence (DGGI) has sent tax evasion notices of R 21,000 crore to Dream11, and of 21,000 crore to Play Games 24X7, reports said on October 3, citing persons who are privy to the development.

The DGGI action, as claimed in the reports, comes in the backdrop of the 28 percent Goods and Services Tax (GST) rate coming into effect on the entire nominal value for real-money gaming transactions.

The notice to Dream11 and Play Games 24X7 – two leading entities of the online gaming sector – was issued by the Mumbai wing of DGGI, CNBC TV-18 reported. 

As per the report, Dream11 was earlier sent a tax evasion notice of 18,000 crore by the Maharashtra GST authority. The DGGI Mumbai, which has reportedly sent the latest notice of 28,000 crore, comes under the purview of the Centre.

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The development comes nearly a week after reports said that Dream Sports, the parent company of Dream11, has moved the Bombay High Court against the tax evasion notice issued by the state GST department.

The 28,000 crore tax evasion notice, as stated in the reports, is the highest amount of claim made against a company. For context, the largest claim thus far was the 21,000 crore show cause notice issued to Gameskraft, a Bengaluru-based company, last year.

Notably, Dream11 holds the leading position in the fantasy gaming sector in India, both in terms of its valuation and the number of users. The company's most recent valuation surpassed $8 billion, and it boasts a user base of over 180 million individuals on its sports fantasy platform.

In the fiscal year concluding on March 31, 2022, Dream11 disclosed a net profit of 142 crore, generated from an operating revenue of 3,840.7 crore.

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Published: 03 Oct 2023, 02:49 PM IST
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