Gaming industry sees tax liability increasing by 1,400% on DGCI calculation

The Directorate General of GST Intelligence (DGGI) has calculated outstanding dues based on actual bets made on portals since 2017, as reported by The Economic Times (ET).

An official informed ET that bets exceeding Rs 71,000 crore were placed in the case of Games24x7 Pvt Ltd and its affiliates, attracting a Goods and Services Tax (GST) of more than Rs 20,000 crore. For Dream11, bets amounting to Rs 1 trillion were made, drawing a GST of over Rs 28,000 crore.

The official noted that GST has been estimated for each individual bet placed on these platforms. For example, if a person places four bets totalling Rs 100, a GST of 28 per cent is applicable each time a bet is made.