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 (SCN) slapped on the e-gaming platform by Goods and Services Tax (GST) authorities.
As per 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 SCN, 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.
The e-gaming company said the impugned notices lack jurisdiction and deserve to be quashed.
Dream11 did not comment on the issue.
A host of online gaming companies and those in casino business have received similar SCN for non-payment of GST at 28 per cent on full face value of bets placed on their platform.
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.
In September last year, a similar SCN was served on online gaming company Gameskraft for recovery of Rs 21,000 crore GST.
The company had approached the Karnataka High Court, which had quashed the SCN.
Following this, the revenue department in July filed a special leave petition in the Supreme Court on the Karnataka High Court ruling in the Gameskraft case. The next date of hearing is listed for October 10.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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