Indian gaming firms under scanner for GST evasion of Rs 23,000 cr

Further, assets amounting to Rs 289.28 crore have been seized under section 37A of the Foreign Exchange Management Act, 1999.

PTIUpdated: Monday, December 12, 2022, 09:02 PM IST
article-image
Pixabay

GST evasion of about Rs 23,000 crore by gaming companies between April 2019 and November 2022 is being investigated by the tax officers, Minister of State for Finance Pankaj Chaudhary said on Monday.
    
In a written reply to a question in the Lok Sabha, the minister said the Enforcement Directorate has attached proceeds of crime of more than Rs 1,000 crore in several cases related to Cyber and Crypto assets frauds wherein online gaming etc have been used for siphoning the proceeds.
    
About evasion of Goods and Services Tax (GST), Chaudhary said Central Board of Indirect Taxes and Customs (CBIC) formations have initiated investigations against some gaming companies (including online gaming firms) located in India as well as abroad. 
    
"The estimated evasion of GST by these companies works out of Rs 22,936 crore, relating to the period April 2019 to Nov. 2022," he said.
    
Besides, the Directorate of Enforcement is investigating several cases related to Cyber and Crypto assets frauds wherein online gaming etc. have been used for siphoning the proceeds. 
    
In these cases, as on December 6, 2022, proceeds of crime of more than Rs 1,000 crore have been attached/seized/freezed under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA). Also, 10 Prosecution Complaints (PCs), including 2 supplementary PCs, have been filed before the Special Court PMLA. 
    
Further, assets amounting to Rs 289.28 crore have been seized under section 37A of the Foreign Exchange Management Act, 1999, the minister said.
    
To a query on whether the Income Tax Department has issued notices to many gaming companies for non-payment of tax, Chaudhary said the information is not available, since no specific identification code for online gaming entities is available in Income Tax Return.
    
"The disclosure of information about specific taxpayer is prohibited except as provided under section 138 of the Income Tax Act, 1961," he added. 

(If you have a story in and around Mumbai, you have our ears, be a citizen journalist and send us your story here. )

(To receive our E-paper on WhatsApp daily, please click here.  To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Here's why stamp duty is payable on the exchange of flats

Here's why stamp duty is payable on the exchange of flats

6 smart ways to manage gap funding

6 smart ways to manage gap funding

The evolution in residential projects is evident in central suburban areas like Sion-Chunabhatti and...

The evolution in residential projects is evident in central suburban areas like Sion-Chunabhatti and...

Before Ashneer Grover's exit, BharatPe lost Rs 5,610.7 cr in FY22

Before Ashneer Grover's exit, BharatPe lost Rs 5,610.7 cr in FY22

Powergrid's pre-qualification norms for drone project seen as restrictive

Powergrid's pre-qualification norms for drone project seen as restrictive