Mumbai28 minutes ago
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Dream11’s parent company Dream Sports has filed a petition in the Bombay High Court against the tax notice of Rs 40 thousand crore. According to media reports, the Directorate General of GST Intelligence (DGGI) has sent show cause notices to 6 online gaming companies.
These companies are accused of Goods and Services Tax (GST) evasion and non-payment of GST at the rate of 28%. According to the report of Moneycontrol, the notice sent to Dream Sports is estimated to be around Rs 40 thousand crores. However, Economics Times has estimated it to be Rs 25 thousand crores.
Dream 11 is a big company in fantasy sports. In the financial year 2021-22, its operating revenue was Rs 3,841 crore and profit was Rs 142 crore.
The biggest tax notice ever
Reports say that the notice received by Dream Sports is the highest amount of tax claim in the history of indirect taxation. Earlier, a tax claim of Rs 21 thousand crore was made against Gameskraft.
Tax evasion of more than one lakh crore rupees
According to the report, the total GST liability of online gaming companies may exceed Rs 1 lakh crore. DGCI has started sending notices regarding this. Most of the notices will be issued by the end of September. DGGI has asked the companies to clarify their stand before sending the final notice. Therefore, at present informational or show cause notices have been sent.
Decision on 28% tax on online gaming, horse racing and casinos
In the 51st meeting of the Goods and Services Tax (GST) Council, the final decision was taken to impose 28% tax on online gaming, horse racing and casinos. Till now 18% tax was levied on these. The government considered the game of skill and the game of chance to be the same. After this, GST Amendment Bill 2023 was passed on 11 August.
President Draupadi Murmu also signed it on 19 August. After that many states including Haryana, Goa and Arunachal Pradesh had made necessary amendments in their respective GST laws.
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