If the tax is not paid, it will be locked; GST department's app for online money gaming apps

 

 

The GST department has taken strict action against online money gaming apps that are cheating by not paying goods and services tax. The Goods and Services Tax department has initiated measures to stop the operation of such apps. An officer at the Directorate General of GST Intelligence headquarters has been given full responsibility in this regard. With this, this officer will be able to send a notice to block any online money gaming app or website if it does not pay goods and services tax.

As per the law, online money gaming companies operating in India and headquartered in any foreign country have to register under the IGST Act and pay GST. There are many foreign companies operating in India but not paying GST. Accordingly, a special officer has been appointed to send notices to such companies. Websites and apps that do not pay GST will be blocked under Section 69A of the Information Technology Act.

The Directorate General of GST Intelligence considers online money gaming as a high-risk category like tax evasion, money laundering, cyber fraud and juvenile delinquency. The online money gaming industry has been reported to have evaded GST to the tune of Rs 81,875 crore in 78 cases. Gaming establishments pay 28% GST on the total amount deposited by players. Most online money gaming apps and websites that offer betting and gambling are not headquartered in India. Such companies operate in low-tax jurisdictions like the British Virgin Islands and Malta.