Online gaming platforms expected to form government panel
Business: An inter-ministerial committee consisting of representatives from ED, RBI, tax and consumer affairs departments may be formed to curb the proliferation of online gaming platforms and ensure compliance with regulations, the DGGI report said. The GST Intelligence Wing of the Central Board of Indirect Taxes and Customs (CBIC) has registered cases against 118 domestic online gaming companies and issued notices to 34 taxpayers on charges relating to taxes of Rs 1,10,531.91 crore. These gaming companies have been served notices for non-payment of GST at the rate of 28 per cent.
Additionally, 658 offshore companies have been identified as unregistered/non-compliant companies and are being investigated by the DGGI. It also recommended blocking of 167 URLs/websites. The Directorate General of GST Intelligence’s (DGGI) annual report for 2023-24 states that online gambling is a “high-risk industry” in terms of tax evasion, money laundering, cyber fraud, juvenile delinquency and various socio-economic issues. Despite legal clarity from October 1, 2023, bringing gaming companies under the tax net remains a challenge.
