Fantasy sports platform Dream11 has withdrawn a petition from the Bombay High Court that had challenged notices related to the alleged tax evasion of
Rs 1,200 crore.

It came after the government of Maharashtra withdrew its show cause notice against the company.

Jyoti Chavan, who appeared on behalf of the state government, told the court the notice was taken back because the Directorate-General of GST (DGGST) was planning to send a fresh show cause notice.

The matter is also being argued at the Supreme Court.

Analysts said the development does not mean the GST authorities are staging a U-turn.

“The withdrawal of the notice issued to Dream XI by the Maharashtra State GST department does not mean that the Government has dropped its plans to levy
GST at 28 per cent on online money gaming companies for the past period,” Payal Thaker, partner, indirect tax, BDO India, said.

“It is reported that counsel for the Maharashtra State Government mentioned that the current show cause notice issued by the Maharashtra State GST authorities is being withdrawn and a fresh notice would be issued by the investigation arm of the central government,’’ Thaker said.

Thaker said the dispute will be between the online gaming companies and the GST authorities. The outcome concerning the GST liability for the past period would depend on the verdict that the top court would deliver in the case of Gameskraf for recovery of rs 21,000 crore..

“We will not comment on this,” said Dream 11 in response to a query by this newspaper.

Mails sent to industry bodies All India Gaming Federation and E-Gaming Federation remained unanswered.

Bengal bill

The West Bengal assembly on Thursday passed a bill by virtue of which online gaming, horse racing and casinos will be taxed at the highest GST rate of 28 per cent on full face value of the bets involved.

Minister of state for finance Chandrima Bhattacharya said when the West Bengal Goods and Services Tax (Second Amendment) Bill, 2023, will become an Act, it will augment the revenue of the state. With inputs from Delhi bureau