DGGI now authorised to block fraudulent online platforms and content

The Finance Ministry has issued a notification that enhances the Directorate General of GST Intelligence’s (DGGI) powers to combat fraudulent activities under the GST and the Information Technology Act, 2000. This notification appoints Additional and Joint Directors (Intelligence) at DGGI headquarters as nodal officers for enforcing provisions under Section 14A(3) of the Integrated Goods and Services Tax Act, 2017. This move aims to strengthen the government’s ability to monitor and address fraud, particularly through unauthorized online platforms.

The DGGI, which plays a crucial role in enforcing GST compliance, operates with 26 zonal units and 40 regional offices across major cities like New Delhi, Bengaluru, Kolkata, and Mumbai. The agency ensures that businesses comply with tax laws and helps maintain the integrity of the tax system.

A recent report revealed that the offshore illegal online betting industry in India is valued at Rs 8,20,000 crore, and the Real Money Online Gaming (RMOG) sector reported tax evasion of Rs 81,875 crore in 2023-24 across 78 cases. These unregulated activities not only cause significant revenue losses but also lead to economic malpractice. The DGGI’s expanded powers will help target and block fraudulent online platforms more effectively, tackling issues like tax evasion, fake GST certificates, and non-compliant business applications.

The DGGI’s new responsibilities include blocking social media accounts and websites promoting illegal gambling and gaming, preventing the misuse of platforms like WhatsApp and Telegram for fraudulent transactions, and identifying non-compliant businesses. This will help create a level playing field for legitimate businesses and ensure better tax compliance.

The government’s move underscores its commitment to curbing tax evasion and protecting national revenue. By empowering the DGGI, the government aims to use digital tools and specialized agencies to tackle fraud in the growing digital economy, ensuring stronger oversight and integrity in India’s GST system.