KKN Gurugram Desk | The Directorate General of GST Intelligence (DGGI) has intensified its crackdown on illegal online gaming platforms, which include both domestic and international operators. According to the Ministry of Finance, these platforms have been operating illegally without registration and have been evading Goods and Services Tax (GST). In its recent statement, the government expressed concerns over the tax evasion and unregulated operations carried out by these platforms.
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The Government’s Action on Illegal Online Gaming Platforms
The Ministry of Finance has confirmed that over 357 websites and URLs of illegal online money gaming platforms operating from overseas have been blocked. Additionally, 700 more platforms are under investigation. The government’s actions are part of a broader effort to curb the rising trend of illegal online gaming and the violation of tax laws.
Illegal Online Money Gaming: A Growing Concern
The Ministry’s statement highlights that many of these platforms are operating without proper registration and are bypassing regulations designed to ensure tax compliance. Online money gaming platforms are classified under the GST law as supply of goods and services, attracting a 28% GST. Any organization operating in this sector is required by law to register under GST. However, these platforms have been found to be circumventing these legal requirements, thereby evading taxes.
The Role of IT Act and Collaboration with NPCI
The DGGI, in collaboration with the Ministry of Electronics and Information Technology, has utilized Section 69 of the IT Act, 2000 to block these illegal websites. By targeting offshore illegal platforms, the government aims to stop the illegal gaming activities that have been rampant in the country.
Bank Accounts Targeted and Blocked
In a recent campaign against illegal gaming platforms, DGGI collaborated with the Indian Financial Intelligence Unit (FIU-IND) and National Payments Corporation of India (NPCI) to target bank accounts used for collecting money from users. As a result, nearly 2,000 bank accounts were blocked, and approximately ₹4 crore were seized.
Additionally, in a separate action, 392 bank accounts linked with UPI IDs of some gaming platforms were temporarily frozen, with a total amount of ₹122.05 crore seized. This action is a part of the government’s efforts to prevent illegal money transfers linked to these platforms.
The Involvement of Celebrities and Influencers
The government also pointed out that several Bollywood celebrities and cricketers, along with social media influencers on platforms like YouTube, WhatsApp, and Instagram, have been promoting these illegal platforms. The Ministry has warned the public about the dangers of engaging with these platforms, as it could lead to significant financial losses.
Government’s Warning to the Public
The Ministry of Finance has urged the public to remain vigilant and avoid getting involved with online money gaming platforms. With the involvement of high-profile celebrities and influencers, many people have been lured into these platforms, unaware of the financial risks involved. The government has called for awareness and caution, as these platforms can endanger people’s hard-earned money.
The government’s crackdown on illegal online gaming platforms is a step towards ensuring the integrity of the financial and gaming sectors in India. By blocking fraudulent websites, freezing bank accounts, and collaborating with financial institutions, the authorities are sending a strong message against tax evasion and the exploitation of unregulated online platforms. As the investigation continues, it is expected that more websites and operators will be brought under scrutiny.
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