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Gaming Firms Receive Notices for Alleged ₹1.12 Lakh Crore GST Evasion: Central Government

Central GST officers have uncovered a total Goods and Services Tax (GST) evasion amounting to ₹1.51 lakh crore in the current fiscal year, up to October 2023. In the pursuit of addressing these evasion cases, 154 individuals have been arrested. Notably, a recovery of ₹18,541 crore has been made thus far in the ongoing fiscal year.

By Team Pardaphash 
Updated Date

The finance ministry disclosed that 71 show cause notices have been issued to online gaming companies for alleged Goods and Services Tax (GST) evasion exceeding ₹1.12 lakh crore during the financial years 2022-23 and 2023-24.

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Central GST officers, in the current fiscal up to October 2023, detected a total GST evasion of ₹1.51 lakh crore, leading to 154 arrests.

The recovery made so far this fiscal is ₹18,541 crore. Minister of State for Finance, Pankaj Chaudhary, shared these details in response to a question in the Rajya Sabha. In 2022-23 fiscal, evasion to the tune of over ₹1.31 lakh crore was detected, resulting in 190 arrests, with a total recovery of ₹33,226 crore during the fiscal.

In 2021-22, 2020-21, and 2019-20, GST evasion stood at ₹73,238 crore, ₹49,384 crore, and ₹40,853 crore, respectively. As of October 2023, no overseas online gaming companies have registered in India. The notices follow the GST Council’s clarification in August that a 28% tax would be levied on the full value of bets placed on online gaming platforms. Online gaming companies have been contesting GST demands in High Courts, asserting they were paying taxes at an 18% rate as the games played on the platform were ‘games of skill.’

The government also amended the GST law, making it mandatory for overseas online gaming companies to register in India from October 1.

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