The Ministry of Finance, together with the Directorate General of GST Intelligence (DGGI), has launched an intensive operation against illegal online gaming platforms, uncovering tax evasion and unregistered operations that threaten the economy.
Widespread Government Action
In a landmark move, over 357 websites and URLs linked to illegal online gaming platforms have been blocked. The Ministry of Finance indicates that these operations often originate overseas and evade the rightly due Goods and Services Tax (GST). With 700 more platforms under investigation, the government’s efforts illustrate a significant step toward curbing these illegal activities.
Why These Platforms Matter
These gaming platforms, as stated in the Ministry’s announcement, have been functioning under the radar, bypassing mandatory registration and avoiding compliance with tax laws. Defined under GST law as the supply of goods and services, these sites must adhere to a 28% GST. However, many have dodged these legal obligations, affecting the country’s revenue collection.
Collaborative Efforts to Combat Evasion
The battle against illegal gaming is supported by the Information Technology Act, 2000 (Section 69), allowing the government to block these offending sites. kknlive.com. Partnering with the Ministry of Electronics and Information Technology, the strategy focuses on offshore crime-stopping measures.
Financial Offenses and Consequences
The joint efforts of the DGGI and Indian Financial Intelligence Unit (FIU-IND), along with the National Payments Corporation of India (NPCI), have yielded tangible results. Nearly 2,000 bank accounts have been flagged and blocked, resulting in the seizure of roughly ₹4 crore. Moreover, a separate initiative has led to freezing 392 bank accounts tied to UPI IDs, with a whopping ₹122.05 crore seized, signaling a significant crackdown against illicit financial transactions.
Media and Celebrity Entanglements
The allure of these platforms has not only captivated general users but also caught the attention of high-profile Bollywood celebrities, cricketers, and social media influencers. Their promotions have lured unsuspecting fans into these risky arenas, often leading to financial pitfalls. The Ministry has cautioned the public regarding the deceptive appeal of such platforms.
Public Awareness and Government Warnings
Amidst these operations, the Ministry has urged citizens to exercise caution and avoid engagement with these gaming websites. Highlighting the potential dangers, such as financial and data exploitation, the government stresses the importance of staying informed and secure.
The relentless government clampdown ensures the financial and gaming sectors in India remain protected from fraudulent practices. By deploying measures like blocking illegal platforms and collaborating with financial entities, authorities work to uphold tax compliance and the integrity of online transactions. As operations continue, a broader set of websites and operators are likely to face scrutiny and regulatory action.