NEW DELHI: Following the GST Council's decision to impose 28 per cent GST on online gaming companies, the Directorate General of GST Intelligence (DGGI) has initiated action to collect it from the companies. DGGI has issued advance notices to several companies for tax arrears of around Rs 55,000 crore.

DGGI's target is Rs 1 lakh crore. Companies have approached the court against this.

A pre-show cause notice is issued before a show cause notice is issued. Of this, the Rs 25,000 crore notice received by Dream11 is the largest indirect tax notice issued in the country. Dream 11 has approached the Bombay High Court against this. Play Games 24x7, Rummy Circle and My11Circle have been served notices demanding payment of over Rs 20,000 crore, and Head Digital Works has been issued notices demanding payment of over Rs 5,000 crore. There is a case in the Supreme Court regarding the arrears of Rs 21,000 crore sent to Gamescraft. DGGI's Mumbai unit alone issued seven pre-showcase notices in the past few days.