• Source:JND

The Directorate General of Goods and Services Tax Intelligence (DGGI) has blocked 357 illegal offshore online gaming websites and attached around 2,400 bank accounts linked to tax evasion, the Finance Ministry said on Saturday. Authorities have also issued a public advisory against engaging with offshore gaming platforms, which are frequently endorsed by Bollywood celebrities, cricketers and social media influencers.

The DGGI has placed nearly 700 offshore e-gaming companies under scrutiny for evading Goods and Services Tax (GST). These firms have been found guilty of failing to register under GST, concealing taxable transactions and bypassing tax regulations. 

Investigations revealed that many of these companies processed transactions through ‘mule’ bank accounts, enabling them to hide financial activities. The ministry confirmed that 166 such accounts have been blocked, reported news agency PTI.

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In addition to blocking bank accounts, the tax intelligence agency has frozen approximately Rs 126 crore in connection with its crackdown on illegal gaming operations. Authorities also arrested three individuals running online money gaming platforms, including Satguru Online Money Gaming, Mahakaal Online Money Gaming and Abhi247 Online Money Gaming. These individuals, operating from outside India, facilitated gambling services for Indian customers while utilizing mule accounts for fund transfers.

High GST Levy On Online Gaming

Under the GST framework, 'Online Money Gaming' is classified as a supply of 'Goods' and is subject to a 28 per cent tax. Entities involved in this sector must register under GST, a requirement that many offshore platforms have ignored. The Finance Ministry warned that, with the upcoming Indian Premier League (IPL) season, enforcement efforts would intensify to curb illicit gaming operations.

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Risks To Financial Integrity And National Security

The ministry cautioned that the involvement of foreign gaming entities distorts fair competition, harms local businesses and compromises national security. These companies frequently circumvent restrictions by creating new web addresses to evade detection. Officials further highlighted that funds collected through mule accounts could be used for illicit activities, posing a serious risk to financial stability.

Public Advisory Against Offshore Gaming Platforms

The government urged the public to avoid unregulated gaming platforms, stressing that endorsements from celebrities and social media influencers should not mislead consumers. Engaging with these platforms could not only jeopardize personal finances but also contribute to activities undermining financial integrity and national security, the ministry said.

(With PTI Inputs)


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