Pankaj Choudhary, MOS Finance. Case. | Photo credit: Kamal Narang
GST evasion of around ₹23,000 crore by gaming companies between April 2019 and November 2022 is being investigated by tax officials, Minister of State for Finance Pankaj Chaudhary said on Monday .
In a written response to a question from the Lok Sabha, the minister said that the Law Enforcement Directorate has attached proceeds of crime of over ₹1,000 crore in several cases related to cyber and crypto assets fraud in which online games, etc. were used to siphon off the product. .
Regarding the Goods and Services Tax (GST) evasion, Mr. Chaudhary said that the Central Board of Excise and Customs (CBIC) formations have initiated investigations against some gambling companies (including online gaming companies) located in India as well as overseas.
“The estimated evasion of GST by these companies amounts to Rs 22,936 crore, relating to the period April 2019 to November 2022,” he said.
In addition, the Law Enforcement Branch is investigating several cases related to cyber and crypto assets fraud in which online games etc. were used to siphon off the product.
In these cases, as of 6 December 2022, proceeds of crime over ₹1,000 Crore have been seized/seized/frozen under the provisions of the Prevention of Money Laundering Act 2002 (PMLA). Also, 10 Prosecution Complaints (CP), including 2 additional CPs, were filed before the PMLA Special Court.
In addition, assets amounting to ₹289.28 crore were seized under Section 37A of the Foreign Exchange Management Act 1999, the minister said.
To find out if the Income Tax Department has issued notices to many gaming companies for non-payment of tax, Mr. Chaudhary said the information is not available because no tax code is available. specific identification for online gambling entities is only available in the tax return.
“Disclosure of information about a specific taxpayer is prohibited except as provided in Section 138 of the Income Tax Act 1961,” he added.