Centre notified the update on blocking tax evading gaming websites via a gazette notification on January 6
The government has assigned an additional or joint director (Intelligence) to oversee the task as the nodal officer
Earlier this week, gaming operators have sought Supreme Court’s intervention against retroactive GST demands
Nearly a month after the probe into 642 offshore gaming, betting, and gambling entities for potential tax evasion, the Centre has enabled the Directorate General of GST Intelligence Headquarter (DGGI-HQ) to block websites of these gaming operators.
The finance ministry notified the update on the probe via a gazette notification yesterday (January 6).
The ministry revealed that the government has assigned an additional or joint director (Intelligence) to oversee the task as the nodal officer.
This initiative of the central government is functional under section 14A(3) of Integrated Goods and Services Tax Act, 2017, where the DGGI-HQ has the right to block those internationally located gaming operators that failed to pay taxes.
Minister of State (MoS) for finance Pankaj Chaudhary informed the Parliament earlier in December that the finance ministry is working with the electronics and IT ministry (MeitY) to block such websites.
It is to note that gaming companies are consistently feeling the pinch of tax burden of 28%, which was implemented in October 2023.
As per reports from earlier this week, gaming operators have sought Supreme Court’s intervention against retroactive GST demands, where at least two companies have filed ‘interlocutory applications’ to restrict the tax office from compelling them till SC gives a final verdict on the tax issue.
Notably, in 2024, the gaming sector constituted 30% of the new media market revenue pie, helped by systemic developments and user aspirations, marking $3.8 Bn, emerging as its fastest-growing segment in FY24.
