India: offshore gambling companies accused of evading taxes
GST officers are investigating Rs 23,000 crore (US$2.81m) tax evasion by gaming companies.
India.- Tax officers are going after offshore entities providing online betting and gambling platforms to Indian residents through mobile apps for violating the Goods and Services Tax (GST) law. The companies are not registered as suppliers of Online Information Database Access and Retrieval (OIDAR) services and are therefore not paying GST.
A source said many offshore entities are making money in India by providing platforms for online betting and gambling but are not GST-registered. The Finance Ministry estimates that gaming companies evaded approximately INR 23,000 crore (US$2.81m) in tax between April 2019 and November 2022.
It is difficult to serve notices to them since they do not have a permanent location or physical presence in India. Some companies also frequently change their overseas bank accounts, making it more difficult to trace them.
The Foreign Exchange Management Act (FEMA) prohibits outward remittances for betting and gambling, and the activities can also be probed by the Enforcement Directorate.
