New Delhi: The Directorate General of Goods and Services Tax Intelligence (DGGI) has stepped up its enforcement action against offshore online gaming operators involved in illegal betting and gambling activities. Approximately 700 such operators are being investigated for GST evasion and tax avoidance.
As per Indian GST legislation, ‘Online Money Gaming’ is defined as a supply of goods and is charged 28 percent duty. Certain offshore operators, however, have been identified as evading GST through not registering, keeping taxable pay-ins hidden, and not paying taxes.
Through a collaborative drive with the Ministry of Electronics and Information Technology (MeitY), 357 illegal offshore gambling websites have been blocked in accordance with Section 69 of the IT Act, 2000. In recent raids on illegal gaming websites, the DGGI froze almost 2,000 bank accounts, holding Rs 4 crore in funds. In another raid, 392 bank accounts of individuals connected to UPI IDs belonging to these websites were placed on debit freeze, with a total of Rs 122.05 crore provisionally seized.
Also, an inquiry into Indian citizens operating offshore gaming websites—namely, Satguru Online Money Gaming Platform, Mahakaal Online Money Gaming Platform, and Abhi247 Online Money Gaming Platform—found that they were employing mule bank accounts to receive money from Indian players. The DGGI has blocked 166 mule accounts and arrested three persons until now, with more investigations ongoing.
Authorities indicate that foreign gaming operators skew fair competition, damage domestic business, and compromise national security through the processing of transactions via mule accounts, which can be applied to illegal financial transactions. The operators often adjust web addresses to evade controls, complicating enforcement. It has also been seen that Bollywood stars, cricketers, and social media personalities on websites such as YouTube, WhatsApp, and Instagram are promoting such illegal gambling websites.
The public is cautioned to exercise care and not indulge in such offshore gaming websites, as it may put personal finances at risk and facilitate financial crimes indirectly. In anticipation of the coming IPL season, the DGGI will heighten enforcement measures against illegal gaming activities.