The Directorate General of GST Intelligence (DGGI) has been granted new powers to directly issue takedown notices for online money gaming apps and websites that are not paying Goods and Services Tax (GST). This change allows the DGGI to bypass previous bureaucratic steps, speeding up efforts to combat tax evasion by offshore gaming companies. The online gaming sector was identified as high-risk for tax evasion, with significant amounts of GST reportedly evaded in the past year.
The Directorate General of GST Intelligence (DGGI) has been empowered to directly issue takedown notices to intermediaries to block online money gaming apps and websites evading Goods and Services Tax (GST). This authority, granted under Section 79(3)(b) of the Information Technology Act, was formal
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FAQ :
The DGGI can now directly issue takedown notices to intermediaries to block online money gaming apps and websites that are evading Goods and Services Tax (GST).
This move aims to clamp down on offshore gaming entities that fail to comply with India's GST laws and to expedite the process of tackling tax evasion in the online gaming sector.
In FY24, the DGGI reported that the online money gaming sector had evaded GST worth ₹81,875 crore across 78 cases.
Gaming entities in India attract 28% GST on the total money deposited by players.
Many platforms offering games of chance operate from tax havens such as Curacao Islands, British Virgin Islands, and Malta.
For GST purposes, 'online money gaming' covers games where players deposit money with the expectation of winning, including both games of skill and chance.