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.
