GST Intelligence targets six gaming sites, directs Google to block access

Google has been served with a takedown notice by the Department of Revenue's Director General of GST Intelligence (DGCI) for allegedly operating without registration in India and failing to pay Integrated Goods and Services Tax (IGST). The notice targets six online gaming and gambling platforms: MGM91.com, Shakunimama.com, Khelomama.com, 247majestic.com, Redgames1.com, and karabet.in.

The blacklisted platforms offered games of chance and skill, including online roulette, teen patti, and blackjack. A copy of the notice reviewed by Moneycontrol reveals that the DGCI's investigation found these platforms provided "online money gaming services" to Indian nationals. As a result, they were obligated to pay IGST under Section 14(a)(1) of the IGST Act, 2017. Reports indicate that while the platforms lacked Indian registration and failed to pay the required taxes, they still received payments through UPI, wallets, net banking, and other methods.

The notices were issued on August 1st, in accordance with Section 14A(3) of the IGST Act, 2017, and Section 79(3)(b) of the Information Technology Act, read with Section 3(1)(d) of the IT Rules, 2021. The DGCI also cited "security of the state" as a reason for blocking access to the platforms. The agency instructed that the websites be blocked within 36 hours, but as of August 10, they remained accessible. Attempts to contact the gaming platforms were unsuccessful, and neither Google nor the DGCI has responded to inquiries.

This action comes at a time when the internet gambling industry is facing heightened scrutiny. Reiterating the 28% GST ruling explained in October 2023, the Center informed the Supreme Court on August 5 that the "full face value of bet" should be taxed, irrespective of whether the game involves skill or chance. This decision has sparked increased debate within the industry.