BENGALURU: Officers of the CGST Bengaluru East Commissionerate have unearthed GST evasion of around Rs 27 crore by a company engaged in Online Real Money Gaming (ORMG). Two persons have been arrested in this connection under the provisions of the CGST Act, 2017.
A search on the premises of M/s Lhakhar Technologies Private Limited, revealed that the company operated an ORMG platform and processed player deposits through multiple payment gateways and banking channels. It is alleged that despite restrictions on real money gaming, the company continued its operations in the guise of an e-commerce operator while substantially suppressing its taxable outward supplies in GST returns.
“Preliminary analysis of the company’s banking transactions indicated that it facilitated online real money gaming transactions with an approximate taxable value of Rs 97 crore during the relevant period, resulting in an estimated GST liability of Rs 27.05 crore, which was neither declared nor discharged.
The investigation revealed a modus operandi of under-reporting turnover while continuing large-scale gaming operations. The role of payment gateways, banking institutions, and other entities connected with the transactions is also under investigation,” the release said.
Considering the magnitude of tax evasion and its wider public implications, the commissionerate has launched a comprehensive investigation.