DGGI collects INR 55,000 crore in taxes from eGaming companies

The Directorate General of GST Intelligence (DGGI) has raised a substantial tax amount of INR 55,000 crore from eGaming companies. These online real money gaming firms have been sent around twelve pre-show cause notices by the DGGI. These notices are related to outstanding Goods and Services Tax (GST) payments.

Among the companies receiving these notices, Dream11, the fantasy sports platform, has been hit with the largest indirect GST tax notice in the country, totaling over INR 25,000 crore. According to industry sources, more such notices are expected to be issued in the coming weeks. This is expected to push the total GST demand from real money gaming companies to approximately INR 1 lakh crore.

The authorities have issued a tax intimation, which must be paid through the DRC-01 A form. This tax intimation is termed as a "pre-show cause notice" in GST terminology, signifying that it is issued before the department serves a formal show-cause notice.