The Directorate General of Goods and Services Tax Intelligence (DGGI) has strengthen its action aganist illegal online gaming websites. This includes both foreign and domestic gaming websites. DGGI said that they have blocked atleast 357 websites, URLs and has frozen 2400 banks accounts linked to the illegal gaming websites. This initiative is taken before Indian Premier League (IPL) to prevent money laundering activities.
Why DGGI is taking strict action aganist foreign and domestic gaming websites?
– Investigation says that some Indian nationals are running illegal gaming platforms from abroad. They are offering foreign gaming platforms to Indian Customers. Some of these gaming platforms are sadguru, Abhi247 and Mahakaal.
– These companies are not registering their websites for GST to hide their taxes.
– These companies are using ‘mule accounts’ for their illegal transactions. Till now government has blocked such 166 bank accounts.
What GST Laws for online gaming says?
Effective from 1 October, 2023 a uniform 28% GST rate applies to online gaming, horse racing and casinos. Means they need to pay 28% GST on the total money deposited with the platform.
Prior it was 18%.
What is the risk of engaging in illegal foreign gaming websites?
– Money laundering and fraud are the major threat under these platforms.
– Money from these platforms can be used in illegal activities, posing threat to national security.
Government warns public to stay away from the foreign gaming platforms to protect their finances and national security. The pubic is requested to only use regulated and legal gaming platforms. Government urge public to be very careful before using any gaming platform and not to get involved even if celebrities, cricketers and social media are endorsing them.
Government goal is to crack down on illegal gaming businesses and create a safer regulated environment for online gaming.