Top lottery firms in India accused of tax evasion

According to a report in the Times of India, several of the top lottery distributors in the country have been busted for trying to evade paying taxes. The three operators – Martin Group, Sugal & Damani Group and Essel Group – have been targeted for attempting to evade paying the Goods and Services Tax (GST) associated with their sales efforts.

Times of India reports that the Central GST Commissioner in Ludhiana has launched cases against E-Cool Gaming Solutions Pvt. Ltd and Pan India Network Limited of the Essel Group, Future Gaming and Hotel Services Pvt. Ltd. of the Martin Group and M/s Skill Lotto of Sugal & Damani.

The cases were registered by Punjab’s central tax department in response to the firms not paying the correct GST rate. They also reportedly didn’t file GST returns and collected payments from customers without making the appropriate deposits to the treasury.

Future Gaming is accused of failing to pay the 28% GST rate, opting instead to pay only 12%. It didn’t make required GST deposits it had collected from customers, nor did it file its required GST returns. Future Gaming is reportedly on the hook for the equivalent of about $839,000.