The Directorate General of Goods and Services Tax Intelligence (DGGI) is stepping up its efforts to tackle tax evasion by offshore online gaming companies in India. They are currently scrutinizing around 700 foreign operators to eliminate illegal gambling and ensure compliance with tax regulations.
In India, both local and foreign online gaming operators must pay a Goods and Services Tax (GST) of 28%. Unfortunately, many offshore platforms have not registered for GST or have hidden taxable income, which has prompted the DGGI to take action.
As part of their crackdown, the DGGI has teamed up with the Ministry of Electronics and Information Technology (MeitY) to block 357 websites linked to illegal online gaming, betting, and gambling. This was done under the IT Act, giving the government the power to restrict access to platforms that threaten financial security.
Additionally, the DGGI has targeted the financial networks of these illegal operators. They have identified and frozen around 2,000 bank accounts being used to collect money from Indian users. With ₹4 crore already attached to these accounts, the DGGI aims to disrupt the financing of these activities.
The investigation has also uncovered Indian operatives running online gaming platforms based outside the country. These individuals are using various setups to facilitate illegal gaming for Indian users. So far, 166 accounts linked to this scheme have been blocked, and three individuals have been arrested.
The impact of illegal offshore gaming extends beyond tax evasion. These platforms create unfair competition for legal operators and pose risks to national security. Authorities worry that money generated by these illicit activities could fund crime. To evade capture, many of these platforms frequently change their names and URLs, making regulatory oversight challenging.
Another concerning trend is the involvement of celebrities and influencers who promote these illegal platforms on social media. Their endorsements can mislead users, putting their finances at risk and indirectly supporting activities that threaten the nation’s stability.
As the Indian Premier League (IPL) season approaches, the DGGI is on high alert, anticipating increased illegal betting activity. They are committed to enforcing tax compliance and protecting legitimate operators in the gaming industry. The authorities urge users to engage only with regulated platforms that follow Indian tax laws.
Experts note that regulations around online gaming are critical in ensuring fair competition and protecting consumers. A recent survey indicated that 60% of respondents are unaware of the risks associated with unregulated online gaming, highlighting the need for public awareness and education on this issue.
Overall, while the DGGI’s actions signal a strong push against illegal online gaming, continuous monitoring and public education will be vital in supporting lawful practices in the industry. For more information on the regulations surrounding online gaming in India, you can view the Government’s GST webpage.
Check out this related article: India’s Vision for ‘Viksit Bharat’ by 2047: Insights from Kumar Mangalam Birla
Source linkTAX EVASION, ONLINE GAMING SITES, GOODS AND SERVICES TAX, BANK ACCOUNTS, OFFSHORE ONLINE GAMING, DGGI CRACKS DOWN ON OFFSHORE ONLINE GAMING: 357 SITES BLOCKED, ₹122 CR FROZEN IN TAX EVASION BUST
