Dream 11 Challenges Rs. 1,200 Crore GST Evasion Notices in Bombay High Court

Fantasy sports platform Dream 11 has taken legal action against show cause notices issued by tax authorities, which allege Goods and Services Tax (GST) evasion of over ₹1,200 crores ($160 million) for the financial years 2017-18 and 2018-19. The notices claim 28% GST on fees related to gambling services provided by Dream 11 to users.

Dream 11, the sponsor of the Indian national cricket team, contests the characterization of its services as gambling. The company asserts that it merely provides a platform for users to participate in fantasy sports, which the Supreme Court has previously recognized as games of skill rather than gambling.

The legal challenge argues that the notices were issued without jurisdiction, as they contradict established legal positions regarding online fantasy sports. Additionally, Dream 11 argues that the notices wrongly apply amendments to the GST Act, which are effective from October 1, 2023, and should not be applied retrospectively.

The case also raises concerns about Section 15(5) of the Central GST Act, claiming it allows excessive delegation of power to officers to determine the value of supplies for taxation purposes based on GST council recommendations. The Bombay High Court will hear the case, which could have significant implications for the taxation of fantasy sports platforms in India.

Author: Anushka Taraniya

News Writer, MIT ADT University