Sporta Technologies Pvt Ltd, which operates the online gaming portal Dream11, has filed a petition in the Bombay high court challenging a pre-show cause notice issued to it by the directorate general of GST intelligence (DGGI) alleging evasion of Goods and Services Tax (GST) amounting to the tune of a staggering ₹25,000 cr.

The plea, filed on Sept 25, is expected to come up for hearing shortly, as the GST pre-show cause notice, billed as the highest ever indirect tax claim from any entity, stumped legal and corporate circles across the country.

Fantasy Sports app’s revenue

Dream11, led by Harsh Jain, is a leading fantasy gaming sector player both in terms of valuation and user base, as per a report.

The company’s recent valuation crossed $8 bn (₹66,569.1 cr) and it claims to have a user-base of several crores of individuals.

Last year, Dream11 posted a net profit of ₹142 cr from an operating revenue of over ₹3,840 cr, according to a report.

₹1 lakh crore of GST demand

Besides Dream11, the DGGI is understood to have slapped several such pre-show cause notices targeting leading online real money gaming companies for purported GST dues amounting to over ₹55,000 cr, and the total GST demand may be almost double to around ₹1,00,000 crore.

Among the entities which have been slapped pre-show cause notices (served before the show-cause notice) are Gameskraft, PlayGames24x7, My11Circle, RummyCircle, etc for huge but varying amounts of GST claims.

(Source: IANS)

-Edited for style

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