DGGI (GST Intelligence) Now Empowered to Block Illegal Content on the Internet

The Ministry of Finance has issued a notification on January 6, 2025, empowering the Directorate General of GST Intelligence (DGGI) to address fraudulent activities under the Information Technology Act, 2000, and the GST Act, 2017. This initiative appoints Additional and Joint Directors (Intelligence) at DGGI headquarters as nodal officers for implementing provisions under Section 14A(3) of the Integrated Goods and Services Tax Act, 2017.

This notification will enhance the government’s ability to tackle fraud committed through unauthorized online platforms, ensuring stronger compliance and monitoring.

Role and Importance of DGGI
The Directorate General of GST Intelligence is a key enforcement agency that plays a vital role in combating tax evasion related to the Goods and Services Tax (GST). Headquartered in New Delhi, DGGI operates with 26 zonal units and 40 regional offices spread across major cities like Bengaluru, Kolkata, and Mumbai. The agency ensures that businesses adhere to tax regulations while safeguarding the integrity of the tax system.

A recent report by the Think Change Forum estimates the offshore illegal online betting industry in India to be valued at a staggering Rs 8,20,000 crore. As per the DGGI Annual Report, the Real Money Online Gaming (RMOG) sector alone reported tax evasion of Rs 81,875 crore across just 78 cases in 2023-24. This unregulated sector not only fuels economic malpractice but also translates into significant tax revenue losses for the country. When combined with the already alarming cases of tax evasion highlighted in goods and services, it underscores the urgent need for enhanced oversight and enforcement. The government’s recent notification empowering the DGGI is expected to play a pivotal role in tackling these challenges and ensuring economic integrity.

DGGI’s newly assigned powers will help address several emerging issues, including the use of illegal online platforms for evasion, and will strengthen the government’s grip on regulatory compliance.

Focus Areas of the Notification
The DGGI is tasked with tackling several critical areas, including:

• Blocking social media accounts and websites promoting betting or gaming that evade GST payments.
• Identifying websites involved in creating fake GST certificates.
• Monitoring non-compliant business applications that avoid paying taxes.
• Preventing misuse of platforms like WhatsApp and Telegram for fraudulent transactions.

Why This is a Game-Changer
Reports suggest that illegal online platforms have led to significant revenue losses through tax evasion. By leveraging these new powers, the DGGI can now target and block fraudulent platforms more effectively. This step will also help ensure that businesses operate within the legal framework, creating a level playing field for legitimate taxpayers.

Impact of the Notification
This notification reaffirms the government’s commitment to curb tax evasion and safeguard national revenue. It underscores the importance of using digital tools and specialized agencies like the DGGI to address the challenges posed by the digital economy.

The move will strengthen compliance, enhance the credibility of the GST system, and provide a robust mechanism to counter fraudulent practices in India.