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.
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.