Govt Investigating 642 Offshore Gaming and Gambling Platforms for Tax Evasion

The Centre is investigating 642 offshore gaming, betting, and gambling companies for potential tax evasion, as stated by Pankaj Chaudhary, Minister of State for Finance, in a response to Parliament. 

The Ministry of Finance is collaborating with the Ministry of Electronics and IT (MeitY) to block these entities' websites. Chaudhary clarified that there are no reciprocal tax-sharing arrangements with foreign governments for this matter.

The Minister revealed that the investigation targets offshore online gaming entities, with non-cooperative ones referred to MeitY for website blocking under the IGST Act, 2017. 

Read more - Zomato’s Head Of Business Finance Hemal Jain Steps Down

This probe follows claims from the All India Gaming Federation (AIGF) CEO, Roland Landers, who said illegal offshore betting platforms cost India $2.5 billion in GST revenue annually. 

Currently, offshore gaming companies must either establish a subsidiary in India or appoint a representative to comply with tax laws. Additionally, online gaming platforms must pay a 28% GST on bets, which was implemented in October 2023. 

Despite industry concerns about the negative impact of the new regime, the government saw a 412% YoY increase in collections from these entities between October 2023 and March 2024.

Advertisment

Startup Funding News: Your Gateway to Every Funding Update.

Latest Startup News: Stay updated with the latest startup news and trends. Your go-to source for startup ecosystem updates.

Startup Stories: Discover inspiring tales of startups overcoming challenges and achieving success.