DGGI sends pre-show cause notice to real money gaming firms: Reports

The Directorate General of GST Intelligence (DGGI) has sent pre-show cause notice to several real-money gaming (RMG) firms, including Dream11, over goods and services tax dues of about Rs 55,000 crore, media reports suggest.

As per a report by The Economic Times, this includes a GST notice of about Rs 25,000 crore to fantasy platform Dream 11.

PlayGames24x7 Pvt Ltd and Head Digital Works Pvt Ltd were also among the list of firms that received these notices as per the report.

YourStory was unable to independently verify this report. Dream11 declined to comment on the development. As per ET's report, the total GST demand raised by DGGI from RMG companies across the country may touch Rs 1 lakh crore.

In May this year, the Karnataka High Court dismissed a goods and services tax (GST) notice issued to Gameskraft, a real-money gaming firm based in Bengaluru. The Supreme Court later in September stayed the Karnataka's High Court's order. The Rs 21,000 crore claim levied against the gaming firm was the highest claim made by the department in the history of indirect taxation.

These notices come at a time when the GST rates for real money gaming firms were revised to 28% on total bets placed at the entry-level. These revised rates are set to be applicable from October 1.

However, the council has said it would be open to reviewing its decision about the tax slabs after six months after several gaming companies protested the move.