"In the case of Dream11, bets worth ₹1 lakh crore were placed and this has attracted a GST of ₹28,000 crore-plus," said an official privy to the development. each time a bet is made - could lead to tax liability rising by 1,300-1,400% on a yearly basis. "After the issue of show cause notices, the firms have the option of appealing before the adjudicating authority (AA). "The industry has pleaded that the GST demand raised is 3-4 times their revenues and that they will have to shut shop. While certain state governments are against 28% levy on fantasy games, the Centre is of the view that this isn't an essential commodity and 28% tax should be levied," another official added.

Source: Economic Times October 04, 2023 12:55 UTC