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

Gautam Buddh Nagar and Jaipur–based online gaming companies are under investigation after the Directorate General of GST Intelligence (DGGI) uncovered a large-scale tax evasion racket in which three firms allegedly earned ₹739 crore within two months by charging children small amounts to play mobile games. The companies are accused of evading ₹329 crore in Goods and Services Tax, leading to arrests and a wider probe into the online gaming ecosystem.

Two Directors Arrested After Raids in Greater Noida and Jaipur

DGGI teams carried out simultaneous operations in Greater Noida and Jaipur, resulting in the arrest of two directors — Ravi Singh and Ranjan Kumar.
The accused were produced before the court of Special CJM Durgesh Nandani on Wednesday and were remanded to 14 days’ judicial custody.

Special Public Prosecutors Lakshya Kumar Singh and Vandana Singh stated that Ravi Singh operated a Greater Noida–based firm named Nwav Wheels, which allegedly evaded ₹206 crore in GST.
Ranjan Kumar, based in Jaipur, ran MS Space Tech and another associated firm, collectively accused of evading ₹123 crore.

Games Costing ₹10–15 Generated Massive Revenues

Investigators said the mobile applications were easily visible on the Play Store and were also promoted through online advertisements and push notifications.
The target users were mostly children, who downloaded the apps to play traditional games such as carrom and ludo. Each session cost ₹10–15, an amount small enough that parents usually ignored the deductions.

Despite the low per-game fee, the companies generated ₹739 crore in just two months, prompting DGGI to launch a deeper investigation into the money trail and user base.

No Gaming Licence, Misuse of E-Commerce Permits

According to prosecution officials, the companies did not possess any authorised online gaming licence. To bypass regulation, they allegedly used licences issued to e-commerce entities and operated the gaming apps under those registrations.

No bills were issued to customers, and the revenue was routed in a manner designed to avoid GST obligations. Officials stated that the scale of the operation suggests several additional entities may be involved, and further financial scrutiny is underway.

Regulatory Crackdown Following Ban on Real-Money Games

India’s Online Gaming Promotion and Regulation Act, 2025 came into effect on 1 October 2025, enforcing a complete ban on online games such as fantasy sports, poker and rummy.
Violations now attract strict penalties for service providers and advertisers. Before the ban, GST on online gaming had been raised to 28 percent amid rising concerns over addiction, financial loss and youth indebtedness.

Authorities note that prior to the new law, cities like Meerut had seen teenagers and young adults placing bets on cricket leagues and other games through mobile apps, leading to mounting debt and, in some cases, criminal behaviour. The government crackdown followed multiple incidents in which individuals fell into financial distress after heavy losses in online gaming.

Investigation Expands as Officials Track Money Trail

DGGI officials said the gaming scam is “much larger than it appears” and that a forensic audit of all three companies is underway. Investigators are examining digital footprints, revenue channels and possible links to additional shell firms.
The department has stated that it is keeping a close watch on online gaming activities across the country, especially those targeting minors through micro-payment models.