The Enforcement Directorate (ED) is currently investigating a bunch of gaming companies for tax evasion worth ₹23,000 Crore. The gaming industry in India has demonstrated tremendous potential for growth and widespread adoption, and this development is certainly a significant one as it includes many online gaming companies. Pankaj Chaudhary, the Minister of State for Finance, has confirmed that the investigation is underway.
“The estimated evasion of GST by these companies works out of Rs 22,936 crore, relating to the period April 2019 to November 2022,” said Pankaj Chaudhary. He also confirmed that It assets totaling ₹289.28 crores have been taken by the authorities under section 37A of the Foreign Exchange Management Act, 1999.
Responding to questions that were raised in the Lok Sabha, Pankaj Chaudhary said “CBIC (Central Board of Indirect Taxes and Customs) formations have initiated investigations against some gaming companies (including Online gaming companies) located in India as well as abroad,” said MoS Pankaj Chaudhary. “The estimated evasion of GST by these companies works out of Rs 22936 crores, relating to the period April 2019 to Nov. 2022.”
“In these cases, as of 06.12.2022, proceeds of crime of more than Rs 1,000 crore have been attached/seized/frozen under the provisions of Prevention of Money Laundering Act, 2002 (PMLA),” he added.
The companies that are involved in the gaming tax evasion case have not been revealed as of now. This is presumably to prevent any disruptions in the investigation