Tax Evasion and Online Gaming: The DGGI's Urgent Recommendations
Rising Tax Evasion Concerns in Online Gaming
The Directorate General of GST Intelligence (DGGI) has raised alarms regarding tax evasion within the online gaming sector. The agency cited significant issues around money laundering and cyber fraud that necessitate close examination.
Proposed Multi-Agency Committee
To tackle these challenges, the DGGI suggests forming an inter-departmental committee that includes officials from the Enforcement Directorate (ED), Reserve Bank of India (RBI), and others. The goal is to ensure rigorous regulation of online gaming platforms.
Key Report Findings
- DGGI's annual report for 2023-24 categorizes online money gaming as a 'high-risk' industry.
- Concerns extend beyond tax evasion to include juvenile delinquency and socio-economic issues.
- 118 domestic gaming entities have come under scrutiny, with the Central Board of Indirect Taxes and Customs (CBIC) issuing Show Cause Notices to 34 firms for tax non-compliance.
Crackdown on Non-Compliant Entities
The DGGI's efforts aim to protect consumers and lawful businesses. Authorities are investigating 658 offshore entities operating without registration. In a significant move, they recommend blocking 167 URLs linked to non-compliant gaming operations. This regulatory action is crucial in preserving market integrity.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.