The Indian Directorate General of Goods and Services Tax Intelligence (DGGI) has intensified its crackdown on illegal offshore online gaming by blocking 357 websites and 2,400 bank accounts linked to these entities.
Under GST law, online money gaming is classified as a supply of goods and is subject to a 28 percent tax, requiring entities in this sector to register.
The DGGI is currently scrutinizing around 700 offshore entities for evading GST by failing to register and concealing taxable income.
A recent report by the Digital India Foundation (DIF) has warned for the alarming scale of illegal online gambling and betting in India, revealing that the industry continues to thrive despite regulatory crackdowns.
In a coordinated effort with the Ministry of Electronics and Information Technology (MeitY), the DGGI has blocked 357 websites of non-compliant offshore gaming operators and attached nearly 2,000 bank accounts, amounting to Rs.4 crore ($465.114).
Additionally, 392 UPI-linked accounts have been put on debit freeze, provisionally attaching Rs.122.05 ($14,1 million) crore.
Recent operations have uncovered Indian nationals facilitating online gaming for Indian customers through platforms like Satguru and Mahakaal, using mule accounts to process payments.
So far, 166 mule accounts have been blocked, and three arrests have been made, with further investigations ongoing, with the DGGI warning that non-compliance by foreign entities distorts competition and poses risks to national security.
At the same time, many celebrities and influencers endorsing these platforms are also under scrutiny, with the public advised to avoid offshore gaming sites to protect their finances and integrity.
As the Indian Premier League season approaches, the DGGI pledged to intensify enforcement against illegal gaming operations, emphasizing the importance of using regulated platforms for responsible gaming.
