NEW DELHI: The Directorate General of Goods and Services Tax Intelligence (DGGI) has ramped up its enforcement actions against offshore online gaming entities as part of a wider crackdown on tax evasion in the sector. The online money gaming industry, which includes both domestic and foreign operators, has come under increased scrutiny for failing to comply with Goods and Services Tax (GST) regulations.
Under GST law, ‘Online Money Gaming,’ classified as an actionable claim, is treated as a supply of ‘goods’ and is subject to a 28 per cent tax. Entities engaged in such activities are legally required to register under GST. However, investigations have revealed that around 700 offshore entities involved in online money gaming, betting, and gambling are under the DGGI’s radar for evading GST by failing to register, concealing taxable pay-ins, and bypassing tax obligations.
Authorities have already blocked 357 websites and URLs of illegal or non-compliant offshore online gaming platforms in coordination with the Ministry of Electronics and Information Technology (MeitY) under Section 69 of the IT Act, 2000.
In a recent operation, DGGI, in collaboration with the Indian Cyber Crime Coordination Centre (I4C) and the National Payments Corporation of India (NPCI), targeted bank accounts linked to illegal gaming platforms. Nearly 2,000 bank accounts used to collect funds from Indian participants were blocked, and Rs 4 crore was attached. In a separate action, 392 bank accounts linked to UPI IDs associated with offshore gaming websites were placed under debit freeze, with Rs 122.05 crore provisionally attached.
Further investigations exposed Indian nationals operating offshore gaming platforms catering to Indian users. Platforms such as Satguru Online Money Gaming, Mahakaal Online Money Gaming, and Abhi247 Online Money Gaming were found funnelling money through ‘mule’ bank accounts—fraudulent accounts used to process illicit transactions. DGGI has so far blocked 166 such mule accounts and arrested three individuals involved in these operations. Authorities continue to investigate others suspected of similar activities.
The government has expressed concerns that non-compliance by foreign gaming entities distorts fair competition, harms local businesses, and manipulates the market by skirting legal obligations. Many of these offshore platforms have been found to create new web addresses to evade restrictions, further complicating enforcement efforts.
Officials also warned that funds collected through mule accounts could potentially be redirected into illicit activities, raising concerns over financial security and possible threats to national security.
DGGI has noted that several Bollywood celebrities, cricketers, and social media influencers on platforms such as YouTube, WhatsApp, and Instagram have been endorsing offshore gaming platforms. Authorities have urged the public to remain cautious and avoid engaging with such platforms, warning that participation could endanger personal finances and inadvertently support activities undermining financial integrity and national security.
With the upcoming Indian Premier League (IPL) season expected to drive a surge in online gaming activity, enforcement actions are set to intensify further. DGGI has reaffirmed its commitment to tackling illegal offshore gaming operations and ensuring compliance with GST laws, urging users to engage only with regulated platforms to ensure responsible gaming.
