GST Intelligence asks Google to take down 6 gambling websites over registration and tax evasion claims

The Director General of GST Intelligence (DGCI) under the Department of Revenue has asked Google to take down six online gaming and gambling entities for not registering in the country and failing to pay Integrated Goods and Services Tax (IGST).

GST Intelligence asks Google to take down 6 gaming and gambling sites

As reported by MoneyControl, the six platforms include MGM91.com, Shakunimama.com, Khelomama.com, 247majestic.com, Redgames1.com and karabet.in.

These platforms offer a host of games of skill and games of chance like online roulette, teen patti, blackjack and so on.

According to MC, the take-down notices were sent on August 1, under Section 79 (3) (b) of the Information Technology Act, read with Section 3 (1) (d) of the IT Rules, 2021 and Section 14A (3) of the Integrated Goods and Services Tax Act, 2017.

GST cited 'security of the state' as a reason for flagging these platforms.

According to a copy of the takedown notice reviewed by Moneycontrol, an investigation by the Director General of GST Intelligence found that platforms offered "online money gaming services" to Indian citizens and hence were liable to pay IGST under Section 14 (a) (1) of the IGST Act, 2017. However, the entities have failed to pay the said tax as alleged by the DGST.

Additionally, DGST stated that these entities offer these games through their websites, Android/iOS applications, and accept payments, including through UPI, wallets, net banking, and so on.

However, since they had failed to register themselves in India and pay taxes, they were liable to be blocked for access, the DGST said in the notice, adding that the websites had to be blocked within 36 hours.

Moneycontrol was still able to access the website as of August 10 and reached out to Google and the DGST with queries on the matter.

However, the publication was not able to reach out to the online gaming entities in question.

On August 5, the Centre told the Supreme Court that in online gaming, the entire stake amount, or the ‘full face value of the bet’, should be considered for taxation. 

The central government clarified in October 2023 that a 28 per cent GST was applicable on the full face value of bets.

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