Adtech regulation a priority for Modi govt in third term: MoS Rajeev Chandrasekhar

Credibility of news and platforms are as important as monetisation challenges: Anurag Thakur

HUL: Meet the leaders who have emerged from "The CEO Factory"

Punit Goenka addresses Zee employees; ensures no layoffs due to failed merger

Disney's strategic sale to Viacom18 set to boost market share to 40 percent

The Leader's Edge: Storyboard18 in conversation with leaders, decision makers and disruptors

Nobody’s Perfect Retro Porsche Ad

In Conversation With Raja Rajamannar, Mastercard

Shahid Kapoor And Varun Ganjoo Speaks On PokerBaazi's Campaign

In conversation with IHCL’s Puneet Chhatwal & GroupM’s Kate Scott-Dawkins

Why are brands including e-sports in their sports marketing itinerary?

Storyboard18 x The English Nut: How to pronounce these 10 brand names

Experts' Take On Reinvention Of Ad Campaigns Through Technology

Experts Speak On Key Emerging Trends In Cannes Lions Entries

Leaders of the future have to be outstanding human beings: Nestle MD

In conversation with VMLY&R’s Hari Ramanathan

The Game Developers Association of India (GDAI) has signed a Memorandum of Understanding (MoU) with the Federation of Indian Chambers of Commerce & Industry (FICCI) to develop policies aimed at fostering growth in the gaming sector. GDAI has also signed MoUs with the states of Rajasthan and Sikkim to enhance game development, align policy initiatives, and drive innovation.

D. Sridhar Babu, Telangana’s IT Minister, and Dr. Palanivel Thiagarajan, Tamil Nadu’s IT Minister, met with key stakeholders from the gaming industry at the 16th India Game Developer Conference (IGDC), organized by GDAI. The Ministers and stakeholders brainstormed on the initiatives around the video gaming industry.

An industry stakeholder on condition of anonymity said, “We raised concerns about the shortage of skilled game developers and the need for government support to build infrastructure for the ecosystem’s growth. While there is abundant passion, we lack both talent and incubation opportunities.”

The participant added, “The Ministers were receptive and committed to creating a roadmap for the industry’s growth in their respective states.”

Commenting on the MoU with FICCI, Manvendra Shukul, a GDAI board member, said, “FICCI, as a policy and industry body, will collaborate with GDAI to map out the requirements, including policy development, for the growth of gaming sector. GDAI will provide industry insights, while FICCI will help us advocate with the government.”

Shukul continued, “FICCI will act as a bridge between the government and the gaming industry. GDAI will also support FICCI’s initiatives, such as FICCI Frames.”

Regarding the MoUs with Rajasthan and Sikkim, Shukul stated, “GDAI’s goal over the next five years is to establish an ecosystem and maximize India’s video game intellectual properties (IPs). We aim to become the world’s IP capital. These MoUs mark the beginning of that journey.”

He emphasized, “We need to incubate talent and increase the number of game developers, which is the focus of our agreements with these states.”

The MoUs with the states of Rajasthan and Sikkim further stipulate that GDAI will provide expertise in skill development and expanding the video gaming industry.

Additionally, the state governments of Tamil Nadu and Telangana have engaged actively with GDAI and officials from the Ministry of Information and Broadcasting (MIB). They have requested the establishment of regional Centers of Excellence (CoE) in Telangana and Tamil Nadu to support the Animation, Visual Effects, Gaming, and Comics (AVGC) sector. These CoEs would serve as hubs for research, development, and training in game design and interactive media.

Neerja Sekhar, Additional Secretary of MIB, emphasized on the importance of a premier game development school and the inclusion of gaming courses in leading technology, design, and arts institutions. The gaming industry will prepare and submit a detailed project report to the central government for consideration.

GDAI signs MoU with FICCI to streamline gaming policies, sector growth

In a significant boost for the video gaming industry, the Indian government has decided to separate Real Money Gaming (RMG) from the video gaming sector. The longstanding demand to differentiate between entertainment-focused gaming and pay-to-play gaming has finally been addressed. This move aims to enable the government to develop more targeted and effective policies for both the RMG and video gaming industries.

Sanjay Jaju, Secretary of the Ministry of Information and Broadcasting (MIB), addressed key concerns of game developers during a closed-door roundtable at the 16th edition of the India Game Developer Conference (IGDC). Speaking to Storyboard18, developers present at the session confirmed, "The government has decided to distinctly separate the RMG industry from the video gaming sector. The Secretary clarified that video games designed for entertainment and content will fall under the jurisdiction of the MIB."

Another developer added, "The RMG industry will be overseen by the Ministry of Electronics and Information Technology (MeitY). The Secretary emphasized that the government understands these are two fundamentally different industries and cannot be regulated in the same manner."

Manish Agarwal, Board Member of the Game Developers Association of India, remarked, "This bifurcation was inevitable. The video gaming and interactive entertainment industry thrives on creative content. As the MIB Secretary pointed out, entertainment is central to this industry. Therefore, it naturally aligns with MIB, which also governs other entertainment sectors like OTT platforms, movies, and radio."

Agarwal continued, "In contrast, the RMG industry operates on a cash-in, cash-out model, which leans more toward technology and app-based transactions rather than deep, narrative-driven content. It's logical for MeitY to oversee this sector, with distinct regulations for each industry."

Developers also urged the government to support education and training initiatives in game development at premier institutions in India.

Sridhar Muppidi, Chairperson of the Game Developers Association of India, stated, "India has only 25,000 game developers compared to 6 million globally. Despite a large number of gamers, we lack the talent pool to capitalize on this opportunity."

Muppidi added, "We’ve requested the government to establish a game development school on par with IITs and to introduce game development courses in colleges. This could address the immediate talent gap by incorporating game development into top-tier educational institutions."

He also cautioned, "The government should avoid imposing restrictive regulations on the nascent gaming industry. Over-regulation at this stage could stifle growth. Once the industry matures, regulatory frameworks can be revisited."

Earlier, on September 6, Storyboard18 reported that the Department for Promotion of Industry and Internal Trade (DPIIT) had sent a letter to MIB, MeitY, and NITI Aayog seeking clarity on distinguishing between games of skill and games of chance. This distinction is crucial for drafting a policy formalizing 100% Foreign Direct Investment (FDI) in online gaming.

The proposed policy would permit full FDI in online real-money gaming, provided the investments exclude betting or gambling activities. NITI Aayog, India's premier policy think tank, is working to establish these definitions to ensure a robust long-term framework for the gaming ecosystem.

Read more: <a href="https://www.storyboard18.com/how-it-works/small-part-of-prasar-bharati-ott-will-be-subscription-based-rest-all-free-mibs-sanjay-jaju-47312.htm">Small part of Prasar Bharati OTT will be subscription-based; rest all free, says MIB's Sanjay Jaju</a>

EXCLUSIVE: India’s gaming industry gets clarity, RMG sector to be regulated by MeitY

Gladiators Esports has officially acquired Bengaluru-based Gods Reign, one of the leading esports team in India. The valuation of Gods Reign and the amount was not disclosed by both the parties. 

As part of this acquisition, Gladiators Esports will integrate the Gods Reign into its operations, with Gods Reign retaining its name for the esports team while all other verticals, including content creation and marketing will be under the banner of Gladiators Esports. This consolidation aims to streamline operations, strengthen brand identity, and leverage the combined resources of both entities.

Speaking on the acquisition, Gladiators Esports stated, “We are thrilled to welcome Gods Reign into the Gladiators Esports family. This acquisition reflects our commitment to elevating Indian esports and driving its growth. By integrating the renowned Gods Reign brand and its talented roster, we are not only broadening our reach and influence but also creating a nurturing space for our players and creators to excel. This marks an exciting new chapter, and we eagerly look forward to shaping a bright future for Indian esports.”

In line with this transition, Gods Reign has onboarded Battlegrounds Mobile India roster. 

“This acquisition by  Gladiators Esports represents a pivotal step for both Gods Reign and the Indian esports ecosystem. By combining our expertise, experience, and shared vision for advancing Indian esports, we are poised to deliver unmatched experiences and achievements. Our new BGMI roster, featuring both seasoned talent and fresh perspectives, embodies the high level of competition we’re committed to bringing. Through this strategic move, we aim to amplify opportunities for our athletes, engage our community in exciting new ways, and elevate Indian esports on the global stage,” said Rohith KR, CEO of Gods Reign.

The newly assembled team, which had a combined prize pool earnings of approximately INR 2.5 crores ($276,703) in FY23.

In addition to its esports rosters in Counter-Strike 2, Pokémon UNITE, and BGMI, Gods Reign is also home to some of India's top gaming creators collectively boasting over 6 million YouTube subscribers and more than 1 million Instagram followers.

Gladiator Esports acquires Bengaluru based Gods Reign

With uncertain regulatory policies surrounding Real Money Gaming (RMG) platforms in India, many operators are extending their operations to the Middle East and Latin America. Experts believe that the new 28% tax structure challenges profitability in India, pushing operators offshore and potentially reducing India’s long-term economic benefits.

Real Money Gaming (RMG) was the largest contributor to the gaming sector in India, comprising 83-84% of overall revenue in FY22, according to a report by Grant Thornton Bharat titled Guardians of Safe Play: Ethical Gaming for Vibrant Bharat. Despite regulatory challenges, the report states that RMG attracts around 100 million daily online gamers in India, with 90 million paying to play and an average user spending 8.5 hours per week.

Krishan Arora and Shalabh Saxena, Partners at Grant Thornton Bharat, commented, “If India’s regulatory landscape remains unpredictable or becomes more stringent, it could pose serious challenges for RMG companies, including higher compliance costs, legal risks, and operational obstacles. These factors may make India a less attractive market for continued operations.”

They further noted, “While some RMG companies are expanding into markets like the Middle East and Latin America, it’s unlikely that most will completely exit India in the immediate future. India’s large and growing user base remains highly lucrative. However, regulatory uncertainties and high GST rates may drive some companies to focus on international markets or limit their exposure in India.”

A leading RMG operator in India, speaking anonymously, shared that “Smaller players struggle to reach profitability and are expanding offshore to support their operations in India. If policy uncertainty persists, RMG operators may shift focus fully to international markets.”

Brazil, the fifth-largest gaming market globally by player numbers, is among the fastest-growing in Latin America, according to NewZoo research. In 2022, Brazil ranked tenth in worldwide gaming revenue, generating $2.7 billion. India remains the largest consumer of mobile games globally, with 15 billion downloads annually, followed by the United States and China. Brazil ranks fourth, with 5 billion downloads.

WinZo, which appointed Mahendra Singh Dhoni as its brand ambassador, has expanded into Brazil and is valued at approximately $336 million, according to Tracxn data.

Roland Landers, CEO of the All India Gaming Federation (AIGF), explained, “The lack of clarity around IT rules, combined with the GST hike, has driven further expansion into other regions, where companies are exploring new growth opportunities. However, India’s market remains strategically important and a top priority for most companies.”

Landers also mentioned, “As the market matures, consolidation is expected, especially with recent GST impacts affecting MSMEs more than larger players. The industry has already seen mergers and acquisitions (M&A), a trend likely to continue as companies adapt. Larger RMG firms may diversify their portfolios or adopt hybrid models—balancing international expansions with a sustained focus on India.”

Recently, the Open Network for Digital Commerce (ONDC) onboarded RMG platforms to its network, creating a mutually beneficial situation. ONDC aims to boost the RMG industry by offering a wide range of products and services listed on its network. This initiative is expected to enhance user confidence and trust in these pay-to-play platforms, as they are affiliated with ONDC, a government-backed entity. Experts believe that this initiative is expected to boost the RMG sector in the country.

High taxes and policy uncertainty drive Real Money Gaming operators offshore

In his latest 'Mann Ki Baat' radio broadcast on Sunday, Prime Minister Narendra Modi emphasized India's potential to become a global powerhouse in animation and gaming, as per reports. 

PM Modi cited the immense popularity of homegrown series like Chhota Bheem, Hanuman, and Motu Patlu. He encouraged the nation to seize this opportunity, highlighting the international appeal of Indian animated content and the expanding scope of animation and gaming in the country.

Reflecting on the legacy of iconic Indian animated characters, Modi remarked, "You must remember the days when Chhota Bheem started airing on TV. Children can never forget that; there was so much excitement about Chhota Bheem! You would be surprised that today, 'Dholakpur ka Dhol' attracts children not only in India but also in other countries." He pointed out the widespread fan-following of other series like Krishna and Hanuman worldwide.

Modi noted the ubiquity of animation across platforms, from smartphones to cinemas, gaming consoles to virtual reality. "India is on the way to ushering in a new revolution in the world of animation," he asserted.

He also credited creators such as Harinayaran Rajeev, whose work has contributed to major productions like Spider-Man and Transformers, for elevating India's presence in international media.

The Prime Minister praised India's animation studios for partnering with global giants like Disney and Warner Bros., creating original content that showcases Indian culture on the world stage. VR Tourism was highlighted as a prime example of animation's reach; he explained for virtual tours allow people to explore landmarks like the Ajanta Caves and Varanasi Ghats, sparking interest in real-world visits to these destinations.

As World Animation Day approaches on October 28, Modi encouraged young Indians to take their creativity to new heights, envisioning a future where the next viral animation or ground-breaking game could be born from India. “Expand your creativity. The world’s next super hit animation might emerge out of your computer!” he urged.

He linked this creative momentum to the broader 'Atmanirbhar Bharat Abhiyan' (Self-Reliant India Campaign), highlighting India’s rapid strides in technology and manufacturing. 

“Just think, India, which used to import mobile phones, is the world’s second-largest manufacturer today,” Modi said, citing recent achievements, including becoming the first country to reach the lunar South Pole and launching Asia’s largest imaging telescope in Ladakh.

Modi called on citizens to share stories of local innovations on social media, especially those that contribute to India’s self-reliant journey. 

He concluded by urging people to shop locally during the festive season, supporting the 'Vocal for Local' initiative.

Read more: <a href="https://www.storyboard18.com/gaming-news/exclusive-now-ondc-to-boost-real-money-gaming-industry-42571.htm">EXCLUSIVE: Now ONDC to boost Real Money Gaming industry</a>

PM Modi highlights Indian animation growth, praises 'Chhota Bheem' on Mann Ki Baat

The Indian online gaming sector faces a significant threat from money laundering, necessitating urgent and definite steps to ensure its sustained success and also protect India’s digital economy, reveals ‘Combating Money Laundering in Online Gaming Ecosystem’ report by Digital India Foundation. As per the report, the Indian Real Money Gaming (RMG) sector has become a key player in the global market with a CAGR of 28% from FY20 to FY23 and its projected revenue is set to reach $7.5 billion within next five years. 

The report also highlights that the essential measures needs to be taken for illegal operators and the creation of a whitelist of legal operators, combating misleading advertisements and incorporating principles of financial integrity and international cooperation among others.

Talking about the report, Arvind Gupta, Head and Co-Founder of Digital India Foundation, said, “It is critical to take urgent action against money laundering that is impacting this sunrise industry. Despite ongoing regulatory efforts to curb illegal operators, many platforms circumvent restrictions through mirror sites, illegal branding and disproportionate promises, highlighting the pressing need for stronger oversight and enforcement. With over 400 homegrown start-ups and 100 million daily online gamers, including 90 million who pay to play, the sector employs directly and indirectly approximately one lakh individuals, with the potential to create 250,000 jobs by 2025.” 

Also Read: <a href="https://www.storyboard18.com/how-it-works/iesf-sogf-bet-big-in-india-proposes-to-establish-self-regulatory-esports-body-45860.htm">IESF, SOGF bet big in India, proposes to establish self-regulatory esports body</a>

According to the report, challenges such as issues of financial integrity, cybersecurity and user protection has the potential to impede progress. The severity of these challenges is underscored by the fact that the illegal betting market in India attracts over $100 billion in deposits annually.

Additionally, the report pointed out how the operators are using methods like sophisticated in-game currencies, exaggerated advertisements to attract and defraud users and cryptocurrencies to channelise money laundering through online gaming and has listed specific recommendations to curb them.

Indian online gaming sector faces threat from money laundering, reveals Digital India Foundation report

Union Minister of State for Education Sukanta Majumdar on Monday emphasized the advantages of online games and advocated for their inclusion in the school curriculum.

During the second edition of the Indian Gaming Convention (IGC), held in New Delhi, Majumdar said, "Gamification can revolutionize traditional learning methods by making education much more attractive for students, making complex subjects more accessible and engaging for students and encouraging critical thinking, problem-solving and creativity fostering literacy from an early age preparing students for a tech-driven future".

<a href="https://www.storyboard18.com/digital/india-pushes-to-bring-online-gaming-companies-under-stricter-framework-at-fatf-43030.htm">India pushes to bring online gaming companies under stricter framework at FATF</a>

Further speaking about how innovations through gamification may have a profound impact on education, the minister said, "Emerging technologies such as gamification enhance the educators' ability to respond to student's individual needs and make learning a more engaging experience".

	
<a href="https://www.storyboard18.com/gaming-news/exclusive-now-ondc-to-boost-real-money-gaming-industry-42571.htm">EXCLUSIVE: Now ONDC to boost Real Money Gaming industry</a>

On the New Education Policy, Majumdar said, "The NEP 2020 emphasizes on using innovations like gamification to improve the efficacy of our education system. The NEP emphasizes leveraging technology for enhanced learning, gamification, augmented reality and virtual reality will be key tools for making education interactive and engaging".

However, the Ministery of State for Education said that it was pertinent to practice "responsible gaming", and added, "The government, parents and educators must work together to ensure the balance giving habit that promotes cognitive development without fostering addiction or negative behaviour".

Govt advocates for gamification in school curriculum to boost learning

The Directorate General of GST Intelligence has suggested that there is a need for an arrangement with foreign governments to tackle tax evasion in Online Information and Database Access or Retrieval (OIDAR) services like online gaming. Such arrangement with foreign government will also help blocking websites of notorious illegal gambling and betting websites. 

Recently, the Directorate General of GST Intelligence (DGGI) has detected 6,084 cases of tax evasion totaling Rs 2.01 lakh crore in the financial year 2023-24. According to its annual report, real-money online gaming companies are the largest tax evaders, responsible for Rs 82,000 crore, which constitutes 41% of the total Rs 2 lakh crore evasion uncovered this year.

The DGGI Annual Report states that actions have been taken against 118 domestic online gaming companies, with Show Cause Notices issued to 34 taxpayers, involving tax amounts of Rs 1,10,531.91 crore. The GST department is investigating 658 offshore online gambling companies. 

OIDAR services includes a wide array of services viz cloud services, digital content, online gaming, online advertising etc. When such services are provided by an offshore entity to a non-taxable recipient, the supplier becomes liable for obtaining registration and discharging GST on the same.

Currently, as many as 574 offshore entities providing OIDAR Services have registered themselves with the GST department, and annual revenue from this sector has increased from Rs 80 crore for the FY 2017-18 to Rs 2,675 crore for 2023-24 fiscal.

The Directorate General of GST Intelligence (DGGI) in its annual report noted that since the OIDAR service providers are located abroad it becomes a challenge in GST enforcement and hence the sector remains relatively untapped and holds tremendous revenue potential.

On dealing with such offshore suppliers, it has also dawned that several such suppliers are ignorant of the law, and upon conveying the legal position clearly, such suppliers agree to comply with the GST mandate, it said.
These include the likes of Udemy Inc (USA), Canva Pty (Australia), OVH group (France), Blackboard (Netherlands) etc who registered themselves following efforts of DGGI and discharged significant tax liability.

"However, there are other entities that are non-cooperative and appear to intentionally avoid tax compliance. These include various online casinos based out of tax-havens like Malta, Cypress, Curacao, BVI etc. There are also other entities that are difficult to reach out to on account of them operating through VPN or cloud-based platforms," the DGGI said.

The GST intelligence wing said that unique challenges in tax enforcement in this sector necessitate out-of-the-box interventions to plug revenue leakage.

The DGGI suggested steps like registering with the KODEX platform to receive the data/information in respect of offshore suppliers, as well as coordination with the Reserve Bank of India to obtain relevant data pertaining to forex transactions. 


DGGI will shake hands with foreign govts to crack whip on offshore gambling firms

SuperGaming, a Series-A funded game developer of the Indo-futuristic battle royale game Indus, has announced that the game will finally launch for users this year. SuperGaming, backed by investors including Bandai Namco, Akatsuki Entertainment Technology Fund, Skycatcher, BAce Capital, and Dream Incubator, has been has been hyping up its launch multiple times via teasers and announcements since its inception in January 2022.

In addition to Indus, SuperGaming is developing its own gaming engine, called SuperPlatform, to run hyperscale, real-time multiplayer games.

Roby John, Founder and CEO of SuperGaming, spoke to Storyboard18 about the game’s launch, investments, and the company's Licensing and Merchandising (L&M) strategies. Last month, the Pune-based gaming studio officially launched Indus, its made-in-India battle royale game, in an open beta phase.

The Indian Gaming industry was abuzz over SuperGaming's strategy to hype up its launch for users. When asked if SuperGaming is hyping its launch date multiple times to raise investor funding, John responded, “Whether you raise less or more money, people will always talk about it. But from an investor's perspective, does one think that investors are dumb to buy into hype? Investors don't buy into dumb hype. They are very smart people. The days of investors falling for hype are over. No investor is giving you money just because of some hype you’ve created.”

He added, “They are actually looking at your real product and its metrics. That’s how I’ve raised every dollar—not based on hype or promises, but on hard-earned metrics in the game.”

Speaking about the time and effort it takes to create a video game, John explained, “Not everyone can understand what it takes to make a game. It’s very difficult to explain that a game can take a decade of your life. That’s something very hard for anyone to grasp.”

How much money is required to build a battle royale game?

According to Tracxn, SuperGaming has raised a total of $6.8 million over three rounds, with the first round of funding on November 12, 2019.

When asked how much money it takes to develop a video game, John said, “Video games are like a hungry dragon. To make any kind of game, you’ve got to keep feeding that dragon forever. I’ve spent the last 15 years feeding the dragon to make these games. I’ve lost count of how much I’ve fed it, but we’ve made and raised money, putting all of it into making these games because we want to create the best experience.”

John declined to share the total amount needed to develop a game like Indus, saying, “We’ve had 150 people working on it, and we’ve invested our youth in developing the game. That’s worth more than any dollar amount. We spent eight years building the engine on which Indus runs. So, when you think about six to eight years of work going into it, it’s a considerable amount of money.”

When asked if the company has any timeline to be profitable, John said, "My goal is to always be profitable. We see the launch as a pivotal moment in our history which is an opportunity to building complex products. It takes years of engineering to build some of these and requires lots of investments."

To build a product that is profitable will obviously be the natural direction of how we're proceeding further. We have an engine business as well, where other companies use our licensed engine. So that offers us other opportunities to make money as well. John added. 

Are Indians paying for virtual goods?

According to Lumikai’s report, the Indian gaming industry experienced significant growth during FY23, reaching 568 million gamers, with 25% being paying users. This reflects a 12 percent increase in gamers and a strong 17 percent growth in paying users compared to FY22.

When asked if Indians are paying for in-app virtual products, John said, “India is the fastest-growing new payer market in the world. India is adding more new payers every month on Google Play than the rest of the world combined. These are people paying for in-app purchases for the first time. The user base of those paying for virtual goods is growing fastest in the world here.”

He added, “In India, the way to make money is to earn a little amount but from a lot of users. We’ve noticed that users don’t make just one purchase. They might start with a small one but make multiple purchases over time. This increases value, but the volume comes first as users make small in-app purchases.”

Licensing and Merchandising

According to Global Market Insights, the gaming merchandise market was valued at USD 420.7 million in 2023 and is expected to grow at a CAGR of over 20% between 2024 and 2032. The Asia Pacific gaming merchandise market is projected to reach USD 650 million by 2032.

Speaking about SuperGaming’s L&M strategy, John said, “We’ve already started working on our merchandise. We’ve been approached by many companies to build products around our IPs. We make sure to wear Indus merch everywhere. We’ve received a lot of inbound partnership offers from those wanting to license our IP. We’ve raised money in Japan and the US, and we have connections with large companies to figure out which IPs to focus on.”

For now, however, John mentioned that it’s too early to pursue L&M deals with FMCG or Indian companies. “Once we scale our user base, we’ll look into it. We’d like to collaborate with companies that value what our game represents.”

The Indian Gaming industry is waiting for Indus’ launch to celebrate the success of India’s first homegrown battle royale game.

‘Not hyping to raise funds, investors are not dumb,’ says SuperGaming Founder

The Directorate General of GST Intelligence (DGGI) has detected 6,084 cases of tax evasion totaling Rs 2.01 lakh crore in the financial year 2023-24. According to its annual report, real-money online gaming companies are the largest tax evaders, responsible for Rs 82,000 crore, which constitutes 41% of the total Rs 2 lakh crore evasion uncovered this year.

The DGGI Annual Report states that actions have been taken against 118 domestic online gaming companies, with Show Cause Notices issued to 34 taxpayers, involving tax amounts of Rs 1,10,531.91 crore. The GST department is investigating 658 offshore online gambling companies

Meanwhile, the GST department has collected Rs 2,675 crore from 574 offshore entities offering digital services to Indian entities in FY24. This revenue from offshore entities has risen from Rs 80 crore in FY 2017-18 to Rs 2,675 crore in FY24.

The report highlights companies such as Udemy Inc. (USA), Canva Pty (Australia), OVH Group (France), and Blackboard (Netherlands) as those who registered with the DGGI's efforts and fulfilled significant tax liabilities. However, the DGGI notes that some entities remain uncooperative and seem to intentionally avoid tax compliance.

These offshore companies include various online casinos based in tax havens like Malta, Cyprus, Curacao, and the British Virgin Islands. Other entities are difficult to trace, as they operate through VPNs or cloud-based platforms.

The detection of GST evasion by the DGGI has been steadily increasing since the implementation of GST in 2017. In 2017-18, Rs 7,879 crore was detected, followed by Rs 19,319 crore in 2018-19, Rs 21,739 crore in 2019-20, Rs 31,908 crore in 2020-21, and Rs 50,325 crore in 2021-22.

ONLINE GAMING