Reetu | May 25, 2023 | Views
GST Notice: Haryana Taxation Dept. issued Rs.1500 Crore notice to Gurugram based Online Betting Firm
Haryana’s excise and taxes department issued a Rs 1,500 crore notice to Gurugram-based M/s Probo Media Technologies Private Limited, an online betting operator, in a first-of-its-kind move. The corporation was accused of misclassifying its services in the notice. The GST is applied at a rate of 100% on the face amount of the wager, and the tax rate on the probability of winning in betting, gambling, or horse racing at a race club is 28%. However, this corporation was only paying 18%, resulting in a Rs 1,500 crore tax evasion.
The action taken on secret information by Haryana GST intelligence wing found that the firm was misclassifying its work in order to evade tax. According to an inquiry, the company’s primary location of business, which it listed on the GST site, was not in operation. The firm’s true location was discovered, and it was discovered to be hosting a mobile application named Probo as well as a website/web portal of the same name.
The corporation has been given a notice for avoiding taxes, according to Ashok Kumar Meena, the excise and taxation commissioner for the state of Haryana. This move follows a thorough investigation by the state’s GST intelligence branch. We are effectively leveraging IT tools, and we are producing red flex based on data analytics and IT technologies. In these situations, we are also starting a thorough inquiry. If someone is avoiding paying taxes, we will punish them severely. Based on our ongoing efforts, we were able to attain one of India’s greatest growth rates in the previous financial year.
The notice states, “If no cause is shown against the proposed action within 30 days of receipt of this notice, or they do not appear before the adjudicating authority when the case is posted for hearing, the case will be decided ex-parte on the basis of evidence available on records. If no remark is made, it is assumed that they do not desire to be heard.”
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