IN ONE of the biggest tax enforcement actions arising from the alleged Mahadev Book online betting syndicate, the Directorate General of GST Intelligence (DGGI), Raipur Zonal Unit, has proposed Goods and Services Tax (GST) demands exceeding Rs 40,603 crore after estimating taxable supplies of about Rs 1.45 lakh crore over four financial years. Following an extensive investigation conducted under the leadership of Sujit Mallick, Additional Director General (ADG), DGGI, Raipur Zonal Unit, two show-cause notices were issued by Shivi Sangwan, Joint Director, DGGI Raipur Zonal Unit, on August 26, covering transactions from April 1, 2020 to March 31, 2024. Suspected Mahadev Book promoter Saurabh Chandrakar, his key associate and alleged co-promoter Ravi Uppal, and several persons linked to the network figure among the noticees.

 

The investigation has projected the taxable value at Rs 1,45,010.77 crore. Of the proposed tax liability, around Rs 35,517.22 crore pertains to April 1, 2020 to September 30, 2023, while another Rs 5,085.80 crore in Integrated Goods and Services Tax (IGST) has been proposed for October 1, 2023 to March 31, 2024. The scale of the alleged operation emerges from what investigators describe as an extensive panel-based architecture. Statements recorded during the probe indicated that most panels received approximately Rs 5 lakh to Rs 10 lakh in deposits every day. With the network estimated at nearly 2,000 panels, investigators arrived at combined daily deposits of around Rs 99 crore. According to the investigation, customers contacted operators through WhatsApp numbers displayed on online platforms and were subsequently assigned to individual panels. Money was deposited into designated bank accounts before betting credits or points were issued. Investigators have also flagged the alleged deployment of thirdparty, benami and mule accounts to channel funds.

 

Platforms examined during the investigation include gold365.com, laser247.com, play247.win, 11xplay.com, betbook247.com, silverexch.com, Cricketbet9 and Skyexchange. DGGI’s case is that Mahadev Book functioned not merely as a single application or website, but as a sprawling online betting and money-gaming ecosystem operating through multiple digital platforms. The notices allege that the operation functioned without obtaining the requisite GST registration, filing returns or discharging GST liability despite the magnitude of taxable activity attributed to the network. Statements examined during investigation also allegedly indicated that around 70 to 80 per cent of panel profits travelled upwards as the ‘HeadOffice’ share.

 

The two notices name 66 and 31 noticees respectively for the two periods, with several individuals figuring in both. The proceedings encompass alleged promoters, panel operators, associates and other persons whose roles emerged during the investigation. The tax action assumes added legal significance against the backdrop of the Supreme Court’s Gameskraft ruling concerning GST liability and valuation in online money gaming. The supplied inputs state that the ruling strengthened the legal footing for examining earlier-period betting transactions under the applicable valuation framework. The Mahadev Book action also marks DGGI Raipur Zonal Unit’s first major investigation in the online gaming sector, signalling an enforcement expansion beyond conventional fake invoicing and fraudulent Input Tax Credit (ITC) cases to digital platforms and other suspected forms of tax evasion.