Casinos in Goa and Sikkim have been accused of tax evasion after the GST department uncovered around Rs. 6500 crores (US$950 million) worth of tax irregularities in an investigation, local media reports.
According to the director general of GST Intelligence (DGGI), the case is turning out to be one of the biggest tax evasion cases in recent years.
The casino operators were found to have split services to pay a lower GST tariff, according to DGGI Hyderabad zone chief Balaji Mazumdar.
“Investigations showed that apart from splitting the betting services to ensure lower GST tariff, the casino also paid GST on net revenue though they were supposed to pay on each transaction of a bet,” said another DGGI official.
The authority has now issued show-cause notices to the companies in the wrong.