DGGI's Concerns Over Tax Evasion and Money Laundering in Online Gaming
Increased Scrutiny of Online Gaming
The Directorate General of GST Intelligence (DGGI) has raised alarms regarding the potential for tax evasion and money laundering within the online gaming sector. As per reports, an inter-departmental committee may be established with members from the Enforcement Directorate (ED), Reserve Bank of India (RBI), and various tax departments to address these issues.
High-Risk Classification
The DGGI's annual report for 2023-24 clearly cites online gaming as a 'high-risk' industry fraught with challenges including cyber fraud, juvenile delinquency, and numerous socio-economic concerns. The government emphasizes the need for stringent enforcement of regulations.
- CBIC has issued notices to 118 domestic online gaming companies.
- Show Cause Notices sent to 34 taxpayers for non-compliance with 28% Goods and Services Tax (GST) obligations.
- Investigation underway for 658 offshore entities operating without proper registration.
Recommendations for Blocking Non-Compliant Websites
As part of its enforcement agenda, authorities have recommended the blocking of 167 URLs and websites linked to non-compliant gaming operations.
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.