Goods and Services Tax (GST) investigation arm, DGGI, has not established any reciprocal arrangements with foreign governments for information sharing or enforcement measures to prevent tax evasion in Online Information and Database Access or Retrieval (OIDAR) services, such as e-gaming and online education. However, DGGI has identified 642 offshore entities engaged in online money gaming, betting, and gambling for investigation. Some of these entities have been found non-cooperative during the investigation process. As a result, DGGI has informed the Ministry of Electronics and Information Technology (MeitY) to block the websites and URLs of these non-compliant entities as per Section 14A(3) of the IGST Act, 2017. Despite this, there has been no formal exchange of information with global law enforcement agencies to address the issue of tax evasion in this sector.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO. 3244
TO BE ANSWERED ON MONDAY, DECEMBER 16, 2024/ AGRAHAYANA 25, 1946 (SAKA)
“TAX EVASION IN OIDAR SERVICES”
3244. Shri Selvaganapathi T.M.:
Will the Minister of FINANCE be pleased to state:
a. whether the Goods and Services Tax (GST) investigation arm DGGI has suggested reciprocal arrangements with foreign Governments for information sharing and enforcement measures and to block websites to prevent tax evasion in OIDAR services like e-gaming and online education;
b. if so, the details thereof;
c. whether the DGGI has noticed entities like online casinos that appear to intentionally avoid tax compliance; and
d. whether these entities are non-cooperative and hence an information exchange with global law enforcement agencies would help crack down on any evasion?
ANSWER
MINISTER OF STATE IN MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (d) : No Sir. DGGI does not have any reciprocal arrangements with foreign governments. However, 642 offshore entities providing online money gaming/betting/gambling have been identified till date for investigation.
The offshore online gaming entities which have been found non-responsive and noncooperative during investigation, have been informed to MeitY for blocking their websites/URLs as per provisions of Section 14A(3) of the IGST Act, 2017.
