The Directorate General of GST Intelligence (DGGI) has proposed that payment systems record the website directing users to make payments, alongside the bank accounts linked to GST registrations. This move follows a 14-month investigation uncovering an estimated Rs 70,000 crore betting ecosystem using intermediary merchant companies to route funds, according to medianama.com. The recommendation was sent to the Central Board of Indirect Taxes and Customs (CBIC) in August and then to the Department of Revenue.
The DGGI’s investigation revealed that users place bets on gaming sites, but payments are collected by companies with no visible connection to those sites. Capturing the originating website information at the payment layer would help link these entities and assist enforcement agencies. The CBIC is currently discussing the findings, but no draft rule has been published yet. Payment aggregators currently process data sent by merchants, but the proposal would require capturing the website source as well.
This measure is intended to target gaming violations but could extend to other illicit activities, as the capability to record website origins of payments is not limited to betting. The proposal’s broader scope could enable enforcement agencies to query payment trails for various offenses, marking a significant step in tackling financial crimes facilitated through digital payments. The Rs 70,000 crore figure highlights the scale of the betting ecosystem uncovered by the DGGI.
The recommendation to record website trails for payments was submitted to the CBIC in August, with discussions ongoing as of early September, according to medianama.com. No formal draft rules have been released, indicating that the policy is still under consideration by authorities.