According to a report in Times Of India, Essel Group, Martin Group and Sugal & Damani Group have been charged with the cases of GST evasion. The above three groups are the top 3 lottery distributors in India, and the Central GST (CGST) Commissionerate-Ludhiana has registered cases against these three groups under different charges.
The charges have been applied on the Future Gaming and Hotel Services Pvt. Ltd. (Martin Group); Pan India Network Limited (Essel Group) and E-Cool Gaming Solutions Pvt. Ltd. (Essel Group); and M/s. Skill Lotto (Sugal & Damani Group). As per the report, the central tax department in Punjab has booked the above-listed companies for not-filling GST returns, and have collected GST from customers but not deposited it into the treasury. Also, there are charges for non-payment of the correct rate of GST.
Martin Group (Future Gaming) is said to be liable for Rs. 6.91 crores after the company failed to pay 28% GST. The company is said to have computed the liability at 12% and has failed to deposit the tax collected from customers. Future Gaming is also charged with non-filing of GST returns.
Essel Group (E-Cool Gaming) has a liability of Rs 4.30 crores after the company failed to pay 28% GST and instead computed tax at the rate of 12%. They have been booked under incorrect computation of GST. The same is the case with Sugal & Damani Group (M/s Skill Lotto). The company is said to be liable for at least Rs. 2.50 crores and the probe is still being carried on.
In June 2017, a dual rate for lotteries was announced by GST council under which a 28% GST on the face value of lottery tickets was supposed to be charged from private companies that distribute state lotteries. However, the lotteries which were directly distributed by the state government had only 12% tax rate. In response to this discrimination, many private companies raised their voices and claimed the new taxation structure would have an adverse effect on their businesses. However, no step has been taken from either GST council nor the state government on the subject.