DGGI sends GST Notices to Dream 11 and Play Game 24/7

The Directorate General of Goods and Services Tax Intelligence (DGGI) Mumbai Zone issued a notice to popular online gaming company Dream11, claiming a sum of Rs. 28,000 crore, as per sources.

Furthermore, DGGI Mumbai has issued a notice to Play Games 24X7, claiming Rs 21,000 crore.

This action follows a similar action by Maharashtra State GST Audit officials, who served Dream11 with a notice demanding Rs 18,000 crore. Dream11, one of India’s leading online fantasy sports gaming platforms, is embroiled in a complicated tax dispute with both state and federal tax authorities.

In response to the show cause notice issued by Maharashtra state GST audit authorities, the gaming company filed a writ petition with the Bombay High Court. This legal action was taken after state officials launched an audit in December 2020 and issued final audit reports on January 10, 2022, and January 6, 2023.

The Dream11 controversy revolves around allegations of incorrect classification of online fantasy sports gaming activities.

In its notice, the DGGI Mumbai Zone accused Dream11 of failing to submit the required documents despite several reminders. To address these concerns, the DGGI conducted a thorough inspection on September 14, 2023, according to sources.

Dream11 responded to the inspection by submitting documents in the form of GST DRC 01 for the financial years 2017-18 and 2018-19, which were issued by the Maharashtra state government on September 12, 2023.