The Directorate General of GST Intelligence (DGGI), Ahmedabad zonal unit, has unearthed a massive Rs 140 crore tax evasion allegedly committed by a company engaged in providing online money gaming services.
Acting on specific intelligence, the Gandhidham regional unit examined bank and payment gateway transactions, which helped identify key individuals linked to the network. Based on this analysis, searches were carried out on August 25-26 at six locations in Delhi.
Findings of the Search
- Officials seized incriminating documents and digital evidence.
- Statements from involved persons confirmed that the company failed to disclose online gaming services in GST returns.
- The company has since made a voluntary tax payment of Rs 10.6 crore.
- 36 bank accounts belonging to the firm and its associates have been provisionally attached.
A follow-up search on a travel and ticketing company revealed it was a beneficiary of the fraud, diverting a portion of the funds abroad.
International Links
Preliminary investigations suggest the involvement of Chinese nationals operating from Singapore and China, working in collusion with Indian associates to route money through shell entities.
Current Status
- No arrests have been made so far.
- Investigations are ongoing to trace the full extent of the evasion and identify the ultimate beneficiaries.
Implications
This case highlights the growing challenges faced by tax authorities in regulating online gaming platforms, which often operate across borders. The detection underscores the government's intensified scrutiny of the sector amid concerns over GST compliance, money laundering risks, and overseas fund diversion.
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