Mumbai Leads in GST Evasion Detection: Real Money Gaming in Focus

Mumbai topped the list for GST evasion detection .The real money gaming sector topping the GST evasion list:

1. Major Tax Evasion: The Directorate General of GST Intelligence (DGGI) identified the real money online gaming sector as a significant tax evasion area, detecting evasion worth ₹1.10 lakh crore.
2. Offshore Challenges: Many gaming entities operate from offshore tax havens like Malta, Curacao Islands, and the British Virgin Islands, complicating tax enforcement.
3. Widespread Evasion: The sector’s evasion involves 34 taxpayers, 118 domestic entities, and 658 offshore entities.
4. Technological Hurdles: The use of dark web and VPNs by these platforms poses significant challenges for tax authorities.
5. Multi-Agency Approach: The DGGI recommends a multi-agency approach involving various government departments to tackle this issue effectively.
6. Public Awareness: Increasing public awareness about safe and responsible gaming practices is crucial for regulatory compliance.
7. Blocking URLs: The DGGI has recommended blocking 167 URLs and websites associated with tax evasion.
8. Historical Data: GST evasion has been steadily increasing since 2017, with significant jumps in detected evasion each year.
9. Sector Comparison: The online gaming sector recorded the highest GST evasion in FY24, followed by the banking, financial services, and insurance (BFSI) sector.
10. Geographical Insights: Mumbai topped the list for GST evasion detection, followed by Delhi, Pune, Gurugram, and Hyderabad.