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The Director General of GST Intelligence, under the Department of Revenue, has issued a takedown notice to Google against six online gaming and gambling platforms for allegedly operating without registration in India and failing to pay Integrated Goods and Services Tax (IGST).
The flagged entities—MGM91.com, Shakunimama.com, Khelomama.com, 247majestic.com, Redgames1.com, and karabet.in—were found offering both games of skill and games of chance, including online roulette, teen patti, and blackjack.
The notices, dated August 1, were issued under Section 79(3)(b) of the Information Technology Act, read with Section 3(1)(d) of the IT Rules, 2021, and Section 14A(3) of the IGST Act, 2017. The DGCI cited “security of the state” as one of the reasons for seeking to block access to these platforms.
According to a copy of the notice reviewed by Moneycontrol, the agency investigation revealed that these platforms provided “online money gaming services” to Indian citizens and were therefore liable to pay IGST under Section 14(a)(1) of the IGST Act, 2017. The platforms allegedly accepted payments via UPI, wallets, net banking, and other methods, but had neither registered in India nor paid the applicable taxes.
The agency directed that the websites be blocked within 36 hours. However, as of August 10, Moneycontrol was able to access the sites. Queries sent to Google and the DGCI remain unanswered, and the publication was unable to contact the gaming platforms involved.
The development comes amid heightened scrutiny of the online gaming sector. On August 5, the Centre informed the Supreme Court that the entire stake amount—or the “full face value of bet”—should be taxed, irrespective of whether the game involves skill or chance. This follows the October 2023 clarification by the government that a 28% GST applies on the full face value of bets, a move that has significantly increased the industry’s tax burden and sparked widespread debate within the sector.
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