The Directorate General of GST Intelligence (DGGI) has called for increased monitoring of online gaming platforms, highlighting concerns related to tax evasion and potential money laundering. The move includes a recommendation to establish an inter-departmental committee involving agencies such as the Enforcement Directorate (ED), the Reserve Bank of India (RBI), and other regulatory bodies to address these risks. Action Taken by CBIC and Ongoing Investigations The DGGI, in its latest annual report, flagged online gaming as a "high-risk" industry, particularly concerning tax evasion, cyber fraud, and money laundering.
The report identified online money gaming as a sector facing multiple socio-economic challenges and noted the need for stringent regulatory oversight. Also read: Companies making significant strides in Indic LLMs - Tech Mahindra, Gnani.ai, Sarvam The Central Board of Indirect Taxes and Customs (CBIC), which oversees GST enforcement, has already initiated action against domestic gaming companies.
Show Cause Notices have been issued to 34 entities, demanding over Rs. 1,10,531 crore in unpaid taxes. A total of 118 domestic gaming companies are under investigation for failing to comply with the mandated 28 percent GST on the total deposits collected from players.
International Scrutiny In addition to domestic investigations, the DGGI report identified 658 offshore gaming platforms operating without proper registration. These entities are being scrutinised for their .