Delhi, 22 March (H.S.): The Directorate General of Goods and Services Tax Intelligence (DGGI) has increased its enforcement against offshore online gaming entities, which include both domestic and foreign operators. Under GST law, 'Online Money Gaming' is categorized as a supply of 'Goods' and is subject to a 28% tax, necessitating registration under GST. Currently, about 700 offshore entities engaged in online money gaming and gambling are being investigated for GST evasion, including failure to register and hiding taxable income. The DGGI has blocked 357 websites of non-compliant offshore entities, in collaboration with the Ministry of Electronics and Information Technology (MeitY), under the IT Act.
Recent operations targeted illegal gaming platforms, resulting in the attachment of around 2,000 bank accounts and Rs. 4 crore. Additionally, 392 bank accounts linked to UPI IDs associated with some offshore entities have been frozen, with Rs. 122.05 crore provisionally attached. The DGGI also uncovered Indian nationals running online gaming platforms from abroad, utilizing mule bank accounts to collect funds from Indian customers. So far, 166 such mule accounts have been blocked, and three arrests have been made, with ongoing investigations into more individuals.
Non-compliance by foreign entities disrupts fair competition and harms local businesses. Many celebrities are reportedly endorsing these platforms, prompting caution for the public. The DGGI is dedicated to combating illegal offshore gaming, particularly with the IPL season approaching, and urges individuals to engage with regulated platforms for responsible gaming.
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Hindusthan Samachar / Jun Sarkar
