DGGI issues show cause notice to Sikkim & Goa casinos

♐According to , casino operators in Goa and Sikkim are said to have evaded Goods and Services Tax (GST) to the tune of a whopping Rs. 6,50🌱0 crore.

According to the news report, a covert operation was launched by officers belonging to the Hyderabad team of the Director Gen꧂eral of GST Intelligence (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 come🐬 to the conclusion that casinos in the country have undervalued GST transactions by paying tax on the net revenues instead of the face value of the bet.

They also claim that the casinos have undervalued transactions by splitting casino and non-casino serv🎃ices.

DGGI Hyderabad zone chief Balaji Mazumdar told TO📖I that the inspection carried out by the department was very successf꧃ul.

Oಞfficials also claim that༺ show cause notice has been issued to the casinos to respond to the allegations of violating GST provisions.

Tax experts however believe that the computati💫on of tax on th🧸e face value of bet runs contrary to logic and can be challenge🤡d in courts on various grounds.