DGGI targets 700 illegal offshore gaming companies

The Directorate General of Goods and Services Tax Intelligence (DGGI) is taking strong actions against illegal online gaming companies as the Indian Premier League (IPL) begins. Around 700 offshore entities are being investigated for illegal betting activities. As the IPL starts, many offshore apps are providing illegal betting services. These companies are registered outside India, which allows them to avoid Indian laws and not pay Goods and Services Tax (GST). The DGGI is closely monitoring these activities. So far, the DGGI has blocked 357 websites that were identified as illegal. They have also temporarily attached 2,000 bank accounts involved in these operations. Additionally, 392 bank accounts connected to these offshore entities have had their debit functions frozen, affecting a total of ₹122 crore. Authorities have arrested three individuals who were helping facilitate online money gaming for Indian customers. These arrests are part of the investigation into platforms like Satguru, Mahakaal, and Abhi247, which use mule bank accounts to collect funds from users in India. The online money gaming sector includes both Indian and foreign operators. Under GST law, online gaming is treated as a supply of goods and subject to a 28% tax. All entities in this sector must register for GST. The government has also empowered the DGGI to issue notices to take down illegal offshore gaming websites.