The Indian tax authority has sent a GST evasion notice of 40,000 crore Indian rupees to the gaming company Dream11 as it is now looking for relief from the Bombay High Court.
Dream11, India’s foremost fantasy gaming company is in the legal spotlight as tax authorities have issued a mighty show cause notice. The notice alleged that Dream11 had evaded Goods and Services Tax (GST) and failed to remit the 28% GST on the nominal value of bets placed through its platform.
The Indian tax authority has levied this staggering 40,000 crore Indian rupees claim against the fantasy gaming company, marking a historic development in India’s indirect taxation landscape.
In response, Dream Sports, Dream11’s parent company, has taken a significant step by filing a petition against the claim in Bombay High Court. The aim of this legal move is to contest the serious allegations put forth by the tax authorities. If the allegations prove to be true, it would be the largest claim of this nature in India.
Dream11 is a leader in the Indian fantasy gaming sector with a valuation exceeding $8 billion and a user base of over 180 million. The outcome of this legal battle could set a precedent for the entire Indian gaming industry’s taxation framework.