Online Gaming Firms Earned Crores Through ₹10 Games, Evaded GST: DGGI

India’s fast-growing online gaming ecosystem is under intense scrutiny after the Directorate General of GST Intelligence (DGGI) uncovered a large-scale tax evasion operation involving low-cost mobile games. According to investigators, three online gaming firms based in Gautam Buddh Nagar and Jaipur allegedly earned ₹739 crore in just two months by charging children small amounts per game, while evading Goods and Services Tax worth ₹329 crore.

The probe gained momentum after DGGI teams conducted coordinated raids in Greater Noida and Jaipur, leading to the arrest of two company directors — Ravi Singh and Ranjan Kumar. Both were produced before a Special CJM court and remanded to 14 days of judicial custody. Officials stated that Ravi Singh operated a Greater Noida–based firm, Nwav Wheels, which allegedly evaded ₹206 crore in GST, while Jaipur-based Ranjan Kumar controlled MS Space Tech and a linked entity accused of evading ₹123 crore.

Investigators revealed that the gaming apps were openly available on the Play Store and aggressively promoted through digital advertisements and push notifications. The games, including popular formats like carrom and ludo, charged users ₹10–15 per session. While the amount seemed insignificant, the model relied on high-frequency play, largely by children, allowing the companies to generate massive revenues without triggering parental concern over small deductions.

Despite operating at scale, the firms allegedly held no valid online gaming licences. Instead, officials say they misused e-commerce registrations to run gaming operations and deliberately avoided issuing invoices to users. The revenue, investigators believe, was routed through structures designed to suppress GST liability and obscure the actual nature of the business.

The crackdown comes against the backdrop of India’s Online Gaming Promotion and Regulation Act, 2025, which came into force on October 1, 2025, banning real-money games such as fantasy sports, poker and rummy. The law followed years of concern over addiction, financial distress and unregulated betting, especially among minors and young adults.

DGGI officials have described the case as far larger than it initially appears. A forensic audit of all three firms is underway, with investigators tracking digital footprints, payment gateways and possible links to shell entities. Authorities say the case highlights how weak internal accounting controls and opaque transaction records can be exploited to evade taxes at scale.

As regulators tighten oversight on digital platforms, experts note that maintaining transparent financial records and real-time compliance monitoring is critical - particularly in high-volume micro-transaction businesses - making professional bookkeeping services in india essential for lawful operations and long-term sustainability.