Fantasy sports platform Dream11 has filed a petition in the Bombay High Court challenging the levy of 28 per cent GST retrospectively on bets placed on its platform.
The petition filed on September 22 follows show cause notices slapped on the e-gaming platform by the Goods and Services Tax (GST) authorities. According to the petition, the tax demand is to the tune of Rs 216.94 crore for 2017-18 and Rs 1,005.77 crore for 2018-19.
Dream11 challenged the notice, which seeks to recover the GST as they were based on the premise that the services provided by the company were those of gambling, on which 28 per cent tax is leviable.
“The impugned notices lack jurisdiction having been issued in teeth of the Apex Court judgments in the petitioner’s own case, wherein, it has been held that online fantasy sports gaming provided by the petitioner are predominantly games of skill, not amounting to gambling/betting,” the petition said.
A host of online gaming companies and those in casino business have received similar notices for non-payment of GST at 28 per cent.
GST authorities last week issued an intimation notice to casino operator Delta Corp and its subsidiaries for shortfall in GST payment worth over Rs 16,000 crore.
The notices follow the GST Council’s clarification that online gaming, casinos and horse racing supplies are subject to 28 per cent tax irrespective of whether they are game of skill or chance.
PTI
