DGGI Intensifies GST Scrutiny Of Online Gaming Platforms Amid ₹2.01 Lakh Crore Evasion Detection In 2023-24 Fiscal

Mumbai: The Goods and Services Tax (GST) investigation arm Directorate General of GST Intelligence (DGGI) has intensified scrutiny of online gaming platforms amid raising concerns about potential tax evasion and money laundering risks.

The DGGI has detected 6,084 cases involving Rs 2.01 lakh crore of GST evasion in 2023-24 fiscal, with online gaming and BFSI in services and iron, copper, scrap and alloys in goods emerging as the sectors most prone to evasion. The GST intelligence and investigation sleuths have flagged the proliferation of online gaming platforms not in compliance with regulatory standards.

In 2023-24, online gaming sector saw maximum evasion with Rs 81,875 crore in 78 cases, followed by Banking, Financial and Insurance (BFSI) with Rs 18,961 crore evasion in 171 cases. Works contract services and pharmaceutical had 343 cases and 22 evasion cases with tax evasion involving Rs 2,846 crore and Rs 40 crore, respectively.

“An inter-departmental committee is on the cards to tackle the tax evasions and money laundering risks in the gaming industry. The proposed committee would include representatives from the Enforcement Directorate (ED), Reserve Bank of India (RBI), and various tax and consumer affairs departments,” confirmed senior tax official.

The annual report of the Directorate General of GST Intelligence (DGGI) has revealed about 46 per cent of the evasion cases related to non-payment of tax (through clandestine supply and undervaluation), 20 per cent related to fake Input Tax Credit (ITC), and 19 per cent to wrong availment/non-reversal of ITC.