Tax-officers find extensive GST evasion by online betting, gambling platforms

Share via:

Tax evasion by offshore betting and gambling platforms has once again been brought under scrutiny. The platforms were found to be evading goods and services tax (GST) law by tax officers.

In addition, the tax department is working on ways to tackle GST evasion, news agency PTI reported.

Many offshore entities which provide betting and gambling services are not registered under GST law and subsequently these companies evading taxes.

“Although several overseas educational bodies offering online courses in India are registered as OIDAR, the entities providing online gaming, betting ad gambling platforms are not registered under GST. We are pursuing such cases and hope to bring them under the GST net,” according to a source quoted by PTI.

Despite not being registered under required law, betting and gambling apps are available on Google Play Store and App Store for free download.

Although these companies are obligated to pay GST for their operations and transactions within the country, it is challenging to issue notices to them as they lack a fixed establishment or physical footprint in India.

Moreover, it has been discovered that a significant number of these companies regularly alter their offshore bank accounts, making it arduous to track and locate them.

This comes to light a time when the Ministry of Electronics and Information Technology prohibited online gambling and betting platforms.

Earlier this month, the Directorate General of GST Intelligence (DGGI) issued notices to as many as 38 such platforms for allegedly laundering money and syphoning off taxes.

These platforms have come under scanner multiple times for tax evasion.The Enforcement Directorate (ED) also seized INR 212.91 Cr till December 2022 in connection with money laundering probes involving online gambling platforms.

The Ministry of Information and Broadcasting (MIB) also advised media entities, media platforms and online advertisement intermediaries to refrain from carrying advertisements/promotional content of betting platforms earlier this month.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Sarthak Luthra
Sarthak Luthra
Hey, there! I am the tech guy. I get things running around here and I post sometimes. ~ naam toh suna hi hoga, ab kaam bhi dekhlo :-)

Popular

More Like this

Tax-officers find extensive GST evasion by online betting, gambling platforms

Tax evasion by offshore betting and gambling platforms has once again been brought under scrutiny. The platforms were found to be evading goods and services tax (GST) law by tax officers.

In addition, the tax department is working on ways to tackle GST evasion, news agency PTI reported.

Many offshore entities which provide betting and gambling services are not registered under GST law and subsequently these companies evading taxes.

“Although several overseas educational bodies offering online courses in India are registered as OIDAR, the entities providing online gaming, betting ad gambling platforms are not registered under GST. We are pursuing such cases and hope to bring them under the GST net,” according to a source quoted by PTI.

Despite not being registered under required law, betting and gambling apps are available on Google Play Store and App Store for free download.

Although these companies are obligated to pay GST for their operations and transactions within the country, it is challenging to issue notices to them as they lack a fixed establishment or physical footprint in India.

Moreover, it has been discovered that a significant number of these companies regularly alter their offshore bank accounts, making it arduous to track and locate them.

This comes to light a time when the Ministry of Electronics and Information Technology prohibited online gambling and betting platforms.

Earlier this month, the Directorate General of GST Intelligence (DGGI) issued notices to as many as 38 such platforms for allegedly laundering money and syphoning off taxes.

These platforms have come under scanner multiple times for tax evasion.The Enforcement Directorate (ED) also seized INR 212.91 Cr till December 2022 in connection with money laundering probes involving online gambling platforms.

The Ministry of Information and Broadcasting (MIB) also advised media entities, media platforms and online advertisement intermediaries to refrain from carrying advertisements/promotional content of betting platforms earlier this month.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Website Upgradation is going on for any glitch kindly connect at office@startupnews.fyi

Sarthak Luthra
Sarthak Luthra
Hey, there! I am the tech guy. I get things running around here and I post sometimes. ~ naam toh suna hi hoga, ab kaam bhi dekhlo :-)

More like this

China’s $47B semiconductor fund puts chip sovereignty front and...

China has closed a third state-backed investment fund...

AI models have favorite numbers, because they think they’re...

AI models are always surprising us, not just...

Apple’s WWDC opportunity: how iOS 18 can make AI...

AI is everywhere. Tech companies not talking about...

Popular

Upcoming Events

Startup Information that matters. Get in your inbox Daily!