HomeGSTDGGI Flags 6 Online Gaming Platforms for Tax Evasion, Issues Takedown Notice...

DGGI Flags 6 Online Gaming Platforms for Tax Evasion, Issues Takedown Notice to Google

The Directorate General of GST Intelligence (DGGI) has issued a takedown notice to Google, targeting six offshore online gaming and gambling platforms for operating in India without registration and for allegedly evading Integrated Goods and Services Tax (IGST).

The platforms named in the notice are MGM91.com, Shakunimama.com, Khelomama.com, 247majestic.com, Redgames1.com, and Karabet.in. These websites host a variety of games of skill and chance, including roulette, teen patti, and blackjack, accessible via web browsers and Android/iOS applications.

According to DGCI, the operators offered โ€œonline money gaming servicesโ€ to Indian users and accepted payments through UPI, wallets, net banking, and other modes. Investigations revealed they failed to register under Indian tax laws and did not pay IGST as required under Section 14(a)(1) of the IGST Act, 2017.

The notice, dated August 1, was issued 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 IGST Act. Citing โ€œsecurity of the state,โ€ the DGCI directed that access to these platforms be blocked within 36 hours.

However, as of August 10, Moneycontrol reported that the websites remained accessible. Queries sent to Google and the DGCI are pending response, while attempts to reach the gaming companies were unsuccessful.

The action comes amid a broader policy stance on taxing online gaming. On August 5, the Centre informed the Supreme Court that the entire stake amountโ€”the โ€œfull face value of betsโ€โ€”should be taxed, regardless of whether the game is based on skill or chance. In October 2023, the government had clarified that a 28% GST applies to the full value of bets, a move that has sparked ongoing disputes within the gaming industry due to its higher tax burden compared to earlier practices.

Read More: Parliamentary Panel Urges โ€˜Time-Boundโ€™ Plan to Operationalise GSTAT Benches Nationwide

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
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