The Directorate General of Goods and Services Tax Intelligence (DGGI) Mumbai Zone has issued a notice to popular online gaming company Dream11, claiming a sum of Rs 28,000 crore, sources told CNBC-TV18. Additionally, DGGI Mumbai has sent a notice to Play Games 24X7 claiming Rs 21,000 crore.
This move comes after a similar action by the Maharashtra State GST Audit authorities, who had served Dream11 with a notice demanding Rs 18,000 crore. Dream11, one of India’s leading online fantasy sports gaming platforms, has found itself embroiled in a complex tax dispute with both state and central tax authorities.
The gaming company had filed a writ petition before the Bombay High Court in response to the show cause notice issued by Maharashtra state GST audit authorities. This legal action was taken after the state authorities initiated an audit in December 2020 and subsequently issued final audit reports on January 10, 2022, and January 6, 2023. The controversy surrounding Dream11 is around allegations of improper classification of online fantasy sports gaming activities.
The DGGI Mumbai Zone, in its notice, accused Dream11 of failing to submit the requisite documents despite several reminders. To address these concerns, a detailed inspection was conducted by the DGGI on September 14, 2023, sources added.
In response to this inspection, Dream11 submitted documents in the form of GST DRC 01 for the financial years 2017-18 and 2018-19, issued by the state government of Maharashtra on September 12, 2023.
