Dream11, led by Harsh Jain, appears to have followed Gameskraft's lead by filing a lawsuit in response to a show-cause notice from tax authorities. This notice relates to claims of GST (goods and services tax) evasion.
The startup's parent company, Dream Sports, has filed a writ suit with the Bombay High Court, according to a Moneycontrol report. This petition intends to challenge the show cause notice that was given by the authorities, who allege that they have been evading GST and have failed to pay the 28% GST on the nominal value of bets.
According to sources cited in the report, Dream11 is facing huge tax allegations of INR 40,000 Crores.
If confirmed, this could be the largest claim in India's history of indirect taxation.
For background, let's note that Gameskraft, a Bengaluru-based company, was served with a show cause notice for a claim worth INR 21,000 Crores last year.
In India, Dream11 is the industry leader in terms of user base and valuation in the fantasy gaming market. The company's most recent valuation was over $8 billion, and its sports fantasy platform has more than 180 million users.
Dream11 reported a net profit of INR 142 crores for the fiscal year that ended on March 31, 2022, which was derived from operating revenue of INR 3,840.7 crores.
Ⓒ Copyright 2023. All Rights Reserved Powered by Vygr Media.
