India GST enforcement agency given blocking powers for tax-avoiding gaming sites

The ministry of finance in India has granted new powers to the directorate general of GST Intelligence (DGGI) to begin blocking online gaming websites and mobile applications that are illegally avoiding goods and services tax (GST) in the country.

Confirmed this week in the Gazette of India, the new regulation – SO 95(E) – is effective immediately. The ministry said this intends to address fraudulent activities under both the Information Technology Act 2000 and GST Act 2017.

The DGGI is an agency tasked with mitigating tax evasion on behalf of the GST Council which enforces the tax requirement.

Online real money gaming companies operating in India are required to pay a 28% turnover tax for skill games. This was first enforced in October 2023 and was reiterated on 10 September last year, following a performance review of the tax measure.

Operators must be registered under the Simplified Registration Scheme of the IGST Act and appoint a person based in India to pay their GST contribution.

Failure to comply could see their websites and apps blocked in the country. Previously, this was done by submitting the blocking order to the ministry of electronics and information technology. However, the new regulation allows the DGGI to directly send takedown notices to operators.

Source : https://igamingbusiness.com/legal-compliance/regulation/indias-dggi-block-illegal-gaming-websites/