Exclusive | GST leakage from off-shore online gaming platforms still unplugged, says DGGI
Flagging a red signal against the illegal offshore betting and gambling platforms operating in the country, India’s apex GST intelligence wing, the Directorate General of GST Intelligence (DGGI), outgoing chief Anil Kumar Gupta told CNBC-TV18 that the government is concerned and is taking concentrated action against these platforms.
Gupta, in an exit interview with CNBC TV18, stated that the online gaming sector, following the Goods and Services Tax (GST) clarity, has been generating handsome revenues for the government.
The government is earning almost four times the GST revenues post-October 1, 2023, when clarity emerged regarding the charging of 28% GST on actionable claims. However, an area of concern where GST leakage continues is through offshore illegal betting and gambling platforms.
While various sectors have received relief from the tax demands and clarifications in law, the online gaming sector is yet to obtain relief. Furthermore, the largest GST evasion continues to occur from illegal offshore betting and gambling platforms, despite the amendments to GST laws. While the local industry has complied with the new amendments, enforcement on offshore operations remains a challenge.
