Crackdown on Offshore Gaming: DGGI Blocks Over 700 Entities for GST Evasion

The Directorate General of GST Intelligence is intensifying enforcement against offshore online gaming entities. Around 700 such entities, evading GST, are under scrutiny. DGGI has blocked 357 websites and bank accounts, warning of potential national security threats. Celebrities are advised against endorsing illicit gaming platforms.

The Directorate General of Goods and Services Tax Intelligence (DGGI) has ramped up its enforcement actions against offshore online gaming entities, as revealed by the Ministry of Finance on Saturday. Approximately 700 entities involved in online money gaming, betting, and gambling activities are currently under the agency's scrutiny.

According to the finance ministry, these offshore entities are circumventing their GST obligations by failing to register, hiding taxable pay-ins, and generally bypassing tax regulations. In a sweeping crackdown, the DGGI, in close collaboration with the Ministry of Electronics and Information Technology, has already blocked 357 illegal or non-compliant offshore gaming URLs.

During recent operations against these platforms, DGGI blocked numerous bank accounts used for player transactions, attaching nearly 2,000 accounts and Rs 4 crore with the help of the National Payments Corporation of India and the Indian Cyber Crime Coordination Centre. Additionally, 392 bank accounts linked to UPI IDs on some offshore sites were frozen, with Rs 122.05 crore provisionally attached.

The ministry also identified individuals running such platforms from outside India, naming several operations including Satguru, Mahakaal, and Abhi247. These operators allegedly used mule accounts to handle transactions, with 166 such accounts blocked to date. Three arrests have been made, with further investigations ongoing.

Public figures, including Bollywood stars and cricketers, were reportedly endorsing these platforms. The finance ministry advises the public to exercise caution and avoid engaging with such offshore entities to protect personal finances and uphold national security. With the IPL season approaching, enforcement efforts are expected to tighten further.

(With inputs from agencies.)