DGGI issues show cause notice to Sikkim & Goa casinos

According to , casino operators in Goa and Sikkim are said to have evaded Goods and Se🏅rvices Tax (GST) to the tune of a whopping R🔴s. 6,500 crore.

According to the news report, a covert operation was launched by officers belonging to the Hyderabad team of the Director General of GST Int꧃elligence (DGGI), based on an anonymous tip-off received in March 2019, wherein department officers conducted undercover surveys on five casinos in Goa and one in Sikkim over the course of two months.

The GST officials, after conducting extensive inquiry have c𒐪ome to the conclusion that casinos in the country have undervalued GST transactions by paying tax on the net revenues ꦚinstead of the face value of the bet.

They also claim that the casinos have undervalued transactions by splitt𝓀ing casino and non-c🌳asino services.

DGGI Hyderabad zone chief Balaji Mazumdar told TOI that the inspection carried out by the depar🥀tment was very successful.

Officials also claim that show cause notice has been issued to🌸 the casinos toꦰ respond to the allegations of violating GST provisions.

Tax experts however believe that the computation of tax on the face v♐alue of bet runs contrary t🙈o logic and can be c꧃hallenged in courts on various grounds.