The investigation against 29 actors, influencers, and YouTubers for allegedly endorsing illegal online betting platforms may soon expand to include scrutiny by the Goods and Services Tax (GST) department, according to emerging reports.
After the Enforcement Directorate (ED) booked these celebrities under the Prevention of Money Laundering Act (PMLA), 2002, tax authorities are now reportedly examining whether the endorsements and associated transactions comply with GST laws. ED had earlier identified over rupees fifty crores paid to media firms.
The celebrities are accused of promoting offshore betting apps such as Parimatch, JeetWin, and others. These platforms have allegedly caused significant financial losses among the public, particularly young users, who were influenced by high-profile endorsements. While this is so, few celebrities still continue to promote illegal betting portals.
Since 2023, offshore gaming and betting platforms targeting Indian users are required to register under the GST Laws and comply with tax regulations. The tax department had earlier commented that such registration does not grant legal status to the games played on the platforms. Failure to register can result in severe penalties under the GST Law, including potential criminal liability for these platforms which operate under shady business structures.
Industry sources suggest that if the GST department moves forward, it could examine whether revenue from celebrity promotions was properly declared, and whether the platforms themselves violated tax obligations. This dual regulatory scrutiny could significantly increase legal exposure for both the endorsers and the companies involved.
The celebrities have generally denied any wrongdoing, claiming they terminated contracts upon realizing the nature of the services. However, complaints filed by individuals highlight financial distress and the potential misuse of celebrity influence to drive gambling-related behavior.
A potential GST probe would underscore the government’s commitment to stricter compliance in the online gaming and betting ecosystem. Observers believe it may set an important precedent for enforcing tax, advertising, and consumer protection norms related to high-risk digital promotions.
Source from: https://g2g.news/gst-on-online-gaming/gst-probe-29-celebrities-betting-apps-ed/
