Gaming companies have indulged in GST evasion of about Rs 23,000 crore between April 2019 and November 2022. Tax officers are now investigating this matter, as confirmed by Minister of State for Finance Pankaj Chaudhary.
Gaming Companies Involved in GST Evasion of Rs. 23000 Crores
As per the minister, In several cases involving cyber and cryptocurrency asset frauds, where online gaming and other activities were used to siphon the proceeds, the Enforcement Directorate has attached proceeds of crime totaling more than Rs 1,000 crore.
Regarding GST evasion, Chaudhary stated that the Central Board of Indirect Taxes and Customs (CBIC) has opened investigations into a number of gaming companies (including online gaming firms) with locations both in India and abroad.
He stated, “The estimated evasion of GST by these companies works out of Rs 22,936 crore, relating to the period April 2019 to Nov. 2022.
In addition, the Directorate of Enforcement is looking into a number of cases involving cyber and cryptocurrency asset frauds, in which online gambling and other activities were used to divert the proceeds.
More Than Rs. 1000 Crores In Criminal Proceeds Attached by ED
In these situations, as of December 6, 2022, more than Rs 1,000 crore in criminal proceeds have been attached, seized, or frozen in accordance with the Prevention of Money Laundering Act, 2002. (PMLA). The Special Court PMLA has also received 10 Prosecution Complaints (PCs), including 2 supplemental PCs.
The Foreign Exchange Management Act of 1999’s Section 37A has also been used to seize assets worth Rs 289.28 crore, the minister said.
Chaudhary responded that the information is not available because there is no specific identification code for online gaming entities in the Income Tax Return, in response to a question about whether the Income Tax Department has issued notices to numerous gaming companies for non-payment of tax.
Except as allowed by section 138 of the Income Tax Act of 1961, it is illegal to disclose information about a specific taxpayer.
