The Directorate General of GST Intelligence (DGGI), Ahmedabad zonal unit, has detected a ₹140 crore tax evasion case involving a company that provides online money gaming services. Here are the key details of the case:
Investigation and Findings:
- Intelligence-led operation: The investigation was initiated based on inputs, which led the DGGI’s Gandhidham regional unit to analyze the company’s bank and payment gateway transactions.
- Searches and evidence: Searches were conducted on August 25-26 at six locations in Delhi. Officials seized incriminating evidence and recorded statements from key individuals, which confirmed the tax evasion.
- Undisclosed services: The company had allegedly failed to disclose its online gaming services in its Goods and Services Tax (GST) returns.
- Voluntary payment: The firm has so far made a voluntary payment of ₹10.6 crore.
- Bank accounts attached: Investigators have attached 36 bank accounts belonging to the company and its associated entities, which were used to route funds.
- Travel company’s role: A follow-up search at a travel and ticketing company revealed it was an ultimate beneficiary, helping to divert funds abroad.
- International involvement: Preliminary findings suggest that Chinese nationals, operating from Singapore and China, are involved in the scheme in collusion with Indian associates.
- Status of the case: No arrests have been made yet, and the investigation is ongoing.
The DGGI is a law enforcement agency under India’s Ministry of Finance, responsible for detecting and preventing GST evasion. This case is part of a broader crackdown on illegal online gaming platforms that evade GST. The agency has been taking action against such entities, including sending takedown notices to block websites and apps.