India has blocked 357 illegal offshore online money gaming platforms

The Directorate General of Goods and Services Tax Intelligence (DGGI) has intensified its enforcement actions against offshore online gaming entities. The online money gaming industry comprises both domestic and foreign operators.

It has been noticed that these entities are evading GST by failing to register, concealing taxable pay-ins, and bypassing tax obligations. So far, 357 websites/URLs of illegal/non-compliant offshore online money gaming entities have been blocked by the DGGI, in coordination with Ministry of Electronics and Information Technology (MeitY), under Section 69 of IT Act, 2000,” the Ministry of Finance said in a statement.

Around 700 offshore entities involved in the supply of online money gaming, betting and gambling are under the DGGI’s scanner.

Under the GST law, ‘Online Money Gaming’, being actionable claim, is classified as a supply of ‘Goods’ and is subject to a 28 per cent tax. Entities operating in this sector are required to register under GST.

In a recent operation against some of the illegal gaming platforms, DGGI targeted and blocked bank accounts that were being used to collect money from participants, attaching nearly 2,000 bank accounts and Rs 4 crore, in coordination with the I4C and the National Payments Corporation of India (NPCI).

In another action, 392 bank accounts linked to UPI IDs found on websites of some of these offshore entities have been put on debit freeze and sum totalling Rs. 122.05 crore has been provisionally attached in these accounts, informed the ministry.

Another operation against a few Indian nationals, who were running online money gaming platforms from outside India, was conducted by DGGI.

“DGGI has so far blocked 166 mule accounts linked with these platforms. Three such persons have been arrested till now and investigation against more such individuals is under progress,” the ministry informed.

“It has been observed that many Bollywood celebrities and cricketers along with YouTube, WhatsApp, and Instagram influencers, are found endorsing these platforms, and therefore the public is advised to remain cautious and not engage with offshore online money gaming platforms as it may jeopardise their personal finances and indirectly support activities that undermine financial integrity and national security,” the ministry advised.