Gaming firms evaded ₹22,936 crore GST from April 2019-November 2022: Centre

The Minister said the Enforcement Directorate has attached proceeds of crime of more than ₹1,000 crore in several cases related to Cyber and Crypto assets frauds

December 12, 2022 03:24 pm | Updated 10:23 pm IST - New Delhi

Pankaj Choudhary, MOS Finance. File.

Pankaj Choudhary, MOS Finance. File. | Photo Credit: Kamal Narang

The estimated evasion of the Goods and Services Tax (GST) by some gaming companies, including online platforms, which was under investigation by the Central Board of Indirect Taxes and Customs formations, was about ₹22,936 crore from April 2019 to November 2022, according to the government.

In a written response to the queries from the Lok Sabha members, Balashowry Vallabbhaneni and Lalubhai Babubhai Patel, Union Minister Pankaj Chaudhary on Monday said the companies under investigation are from India and overseas.

The Minister said information regarding the online gaming companies that were not paying income tax and where the Income Tax Department had issued notices to such companies, was not available, as no specific identification code for online gaming entities was available in the Income Tax Return. “The disclosure of information about specific taxpayer is prohibited except as provided under Section 138 of the Income Tax Act,” he said.

According to the reply, the Enforcement Directorate is also investigating several cases related to cyber and crypto assets frauds wherein online gaming was used for committing fraud and siphoning off the proceeds generated thereof.

“In these cases, as on December 6, 2022, proceeds of crime of more than ₹1,000 crore have been attached/seized/frozen under the provisions of Prevention of Money Laundering Act... also, 10 prosecution complaints (PC), including two supplementary PCs, have been filed before the special court... Assets amounting to ₹289.28 crore have been seized under Section 37A of the Foreign Exchange Management Act,” he said.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.