Tax officials are investigating about Rs. 23,000 in GST evasion by gambling companies between April 2019 and November 2022, Minister of State for Finance Pankaj Chaudhary said on Monday.
In a written response to a question in the Lok Sabha, the minister said: enforcement directorate has in several cases related to cyber and crypto asset fraud, whereby play online etc. were used to skim off the proceeds.
Regarding the Goods and Services Tax (GST) evasion, Chaudhary said the Central Board of Indirect Taxes and Customs (CBIC) formations have launched investigations into some gambling companies (including online gambling companies) based in India and abroad.
“The estimated evasion of GST by these companies is Rs 22,936 crore for the period April 2019 to November 2022,” he said.
The ED is also investigating several cases related to cyber and crypto asset fraud. In these cases, proceeds of crime in excess of Rs 1,000 crore were seized on 6 December 2022 under the provisions of the Anti-Money Laundering Act 2002 (PMLA). Also, 10 Law Enforcement Complaints (PCs), including 2 Supplemental PCs, were filed with the Special Court PMLA.
In addition, assets worth Rs 289.28 crore were seized under Section 37A of the Foreign Exchange Management Act 1999, the minister said.
Responding to a question about whether the Income Tax Administration has issued many gambling companies with non-payment of tax notices, Chaudhary said the information is not available because a specific identification code for online gambling companies is not available on the income tax return.
“The disclosure of information about specific taxpayers is prohibited except as provided by Section 138 of the Income Tax Act 1961,” he added.
