GST evasion of approx. $Tax officials are investigating Rs 23,000 crore from gambling companies between April 2019 and November 2022.
GST evasion of approx. $Tax officials are investigating Rs 23,000 crore from gambling companies between April 2019 and November 2022, Minister of State for Finance Pankaj Chaudhary said on Monday.
In a written response to a question in Lok Sabha, the minister said the Enforcement Directorate has seized criminal proceeds of more than $Rs 1,000 crore in various cases involving cyber and crypto asset fraud where online gaming etc. have been used to siphon off profits.
About the Goods and Services Tax (GST) evasion, Chaudhary said that Central Board of Indirect Tax and Customs (CBIC) formations have launched investigations against some gaming companies (including online gaming companies) located in India and abroad.
“The estimated GST evasion by these companies works from $22,936 crore, relative to the period of April 2019 to November 2022,” it said.
In addition, the Enforcement Directorate is investigating several cases related to cyber and crypto asset fraud where online games etc. have been used to siphon off profits.
In these cases, as of December 6, 2022, the proceeds of crime of more than $Rs 1,000 crore has been seized/seized/frozen under the provisions of the Prevention of Money Laundering Act 2002 (PMLA). In addition, 10 Prosecution Complaints (PCs), including 2 complementary PCs, have been filed with the PMLA Special Court.
In addition, assets worth $Rs 289.28 crore has been seized under section 37A of the Currency Management Act 1999, the minister said.
Asked if the Income Tax Department has issued notices to many gambling companies for non-payment of taxes, Chaudhary said the information is not available as there is no specific identification code for gambling entities. online available in the Income Tax Declaration.
“Disclosure of information about a specific taxpayer is prohibited, except as provided in section 138 of the Income Tax Act 1961,” it added.