The DGGI issues notices to companies in India signalling a major crackdown on online gaming operators

The Directorate General of GST Intelligence (DGGI) has begun the process of issuing notices to all such companies in India, signalling a major crackdown on online gaming operators.

According to official sources, the tax authorities believe that online gaming companies in India have engaged in massive tax evasion.

The DGGI has also taken action against cryptocurrency exchanges in India for alleged GST evasion.

The DGGI has issued a show cause notice for Rs 21,000 crore to online gaming company GamesKraft Technology Private Ltd.

The Karnataka High Court has stayed the demand notice, and proceedings are ongoing.

The GST Council is debating the parameters for taxing online gaming, with the main question being whether to tax the entire bet at face value or the net amount after deducting prize money.