Reetu | Dec 13, 2022 |
CBIC probe into GST evasion of Rs.23000 crore by gaming companies
The CBIC under Ministry of Finance has initiated investigations into GST Evasion of Rs.23,000 by gaming companies located in India as well as abroad from April 2019 to November 2022. Minister of Stated for Finance Pankaj Chaudhary said this in a written reply to a series of question in Lok Sabha on non-payment of taxes by gaming companies.
He stated that the Enforcement Directorate had attached one thousand crore rupees in numerous cases involving Cyber and Crypto assets scams in which online gaming was used for syphoning.
In response to a question on whether various gaming companies owed approximately Rs.58,000 crore in taxes, the minister stated: “CBIC (Central Board of Indirect Taxes and Customs) investigations have begun against some gaming companies (including online gaming companies) based in India and abroad. The anticipated GST evasion by these entities amounts to Rs.22,936 crores from April 2019 to November 2022.”
In response to a further question asked by YSR Congress Mps, “Whether gaming companies have allegedly become a way to launder money?.” State Minister of Finance said, “The Enforcement Directorate is looking into many cases involving cyber and crypto asset scams in which online gaming was utilised to commit fraud and syphon off the proceeds.”
Furthermore, assets totaling 289.28 crore have been seized under section 37A of the Foreign Exchange Management Act, 1999, according to the ministry.
Replying to a question about whether the Income Tax Department has given notices to many gaming enterprises for nonpayment of taxes, Chaudhary stated that the information is not available because there is no particular identifying number for online gambling entities in the Income Tax Return.
He further added, “Disclosing information regarding specific taxpayer is restrained except as provided under section 138 of the Income Tax Act 1961.”
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