The DGGI action, as claimed in the reports, comes in the backdrop of the 28 percent Goods and Services Tax (GST) rate coming into effect on the entire nominal value for real-money gaming transactions.

The notice to Dream11 and Play Games 24X7 – two leading entities of the online gaming sector – was issued by the Mumbai wing of DGGI, CNBC TV-18 reported. 

As per the report, Dream11 was earlier sent a tax evasion notice of ₹18,000 crore by the Maharashtra GST authority. The DGGI Mumbai, which has reportedly sent the latest notice of ₹28,000 crore, comes under the purview of the Centre.

Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

The development comes nearly a week after reports said that Dream Sports, the parent company of Dream11, has moved the Bombay High Court against the tax evasion notice issued by the state GST department.

The ₹28,000 crore tax evasion notice, as stated in the reports, is the highest amount of claim made against a company. For context, the largest claim thus far was the ₹21,000 crore show cause notice issued to Gameskraft, a Bengaluru-based company, last year.

Notably, Dream11 holds the leading position in the fantasy gaming sector in India, both in terms of its valuation and the number of users. The company's most recent valuation surpassed $8 billion, and it boasts a user base of over 180 million individuals on its sports fantasy platform.

In the fiscal year concluding on March 31, 2022, Dream11 disclosed a net profit of ₹142 crore, generated from an operating revenue of ₹3,840.7 crore.