Government Shuts Down 357 Illegal Offshore Online Gaming Sites, 700 More Under Investigation
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Synopsis
On March 22, the Indian government announced the blocking of 357 illegal offshore online gaming websites, with 700 more under investigation. The DGGI has intensified enforcement against tax evasion in the online gaming sector.
Key Takeaways
- 357 illegal gaming sites blocked.
- 700 offshore entities under investigation.
- DGGI intensifies actions against tax evasion.
- Online money gaming classified as 'Goods' under GST.
- Public urged to be cautious of endorsements by celebrities.
New Delhi, March 22 (NationPress) The government announced on Saturday that it has successfully blocked 357 websites/URLs linked to illegal/non-compliant offshore online money gaming platforms, with an additional 700 entities currently under investigation.
The Directorate General of Goods and Services Tax Intelligence (DGGI) has ramped up its enforcement actions against these offshore gaming operations, which include both domestic and international players.
“These entities have been found to be evading GST by not registering, hiding taxable pay-ins, and circumventing tax responsibilities. The DGGI, in collaboration with the Ministry of Electronics and Information Technology (MeitY), has blocked 357 illegal/non-compliant offshore online money gaming sites under Section 69 of the IT Act, 2000,” stated the Ministry of Finance.
Approximately 700 offshore entities involved in online money gaming, betting, and gambling are currently under scrutiny by the DGGI.
Under GST regulations, ‘Online Money Gaming’ is categorized as an actionable claim, classified as a supply of ‘Goods’ and is subject to a 28 percent tax. Entities in this sector must register under GST.
In a recent crackdown on illegal gaming platforms, the DGGI targeted and froze bank accounts used for collecting funds from participants, attaching nearly 2,000 bank accounts and Rs 4 crore, in partnership with the I4C and the National Payments Corporation of India (NPCI).
Additionally, 392 bank accounts associated with UPI IDs linked to some of these offshore entities have been frozen, with a provisional attachment of Rs. 122.05 crore in these accounts, as reported by the ministry.
Another operation was conducted against a few Indian nationals managing online money gaming platforms from outside India, during which the DGGI blocked 166 mule accounts tied to these platforms. Three individuals have been arrested thus far, with investigations ongoing against more suspects.
“It has been noted that numerous Bollywood celebrities, cricketers, and influencers from YouTube, WhatsApp, and Instagram are endorsing these platforms. The public is urged to exercise caution and refrain from engaging with offshore online money gaming platforms, as this could jeopardize their personal finances and inadvertently support activities that threaten financial integrity and national security,” the ministry warned.
