DGGI probes Mahadev Book for Possible GST violations of over Rs. 30000 Cr.

The Directorate General of GST Intelligence (DGGI) has begun an investigation into Mahadev Online Book and its sponsors for alleged GST violations and tax evasion.

The banned app is currently being investigated by the Enforcement Directorate and police in several cities, including Mumbai and Hyderabad, for claims of money laundering, unlawful betting, and match-fixing.

Officials acquainted with the probe believe the GST owed to be around Rs.30,000 crore, as reported.

This statistic includes interest and penalties that have accumulated since the app’s debut in 2018-19. Last year, between September and November, the DGGI issued show-cause notifications to real money gaming (RMG) applications, requesting a total demand of more than Rs.1.12 lakh crore.

Many of these companies opposed the demands in high courts and the Supreme Court.

Unlike reputable RMG enterprises with valid GST registrations, Mahadev Book and its subsidiaries, including Fairplay, Anna Reddy, and Lotus 35, allegedly operated their applications unlawfully and without necessary registration.

When an application faced inspection, the operators apparently stopped it and shifted clients to another, according to sources close to the probe.