The government is coming down heavily on e-gaming companies and has reportedly sent them GST demand notices worth up to Rs 55,000 crore. The Directorate General of GST Intelligence (DGGI), the agency handling the GST issue of e-gaming companies, has reportedly sent pre-showcause notices to a total of 12 companies. 

Dream11 gets Rs 25,000 crore GST notice 

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Dream 1, India's top gaming startups, has received a notice of more than Rs 25,000 crore from DGGI.

Play Games24X7, which is also a major e-gaming platform in India, has also got a GST notice up to Rs 20,000 crore. 

Sources told ZeeBiz that the GST agency is gearing up to send more notices to e-gaming firms in the coming weeks.

GST notices can be sent to as many as 100 companies. Sources also told that Dream11 has reportedly moved the Bombay High Court to contest the hefty GST fine on it.

At present, 77 per cent money of real-money gaming companies make money through online gaming.

SC stays Karnataka High Court's decision

The GST department had sent a notice of GST dues of Rs 21,000 crore to Gameskraft.

After receiving the notice, the e-gaming company moved the Karnataka High Court, which cancelled the GST demand notice. 

However, the aggrieved party moved the Supreme Court, which took a stay on the Karnataka High Court order.

The next hearing in the case is now expected to be held on October 10.