DGGI website-trail proposal could reshape compliance for India’s digital merchants

DGGI is discussing a requirement for payment systems to retain originating-website and GST-linked bank-account records to trace illegal betting flows. The proposal could add compliance burdens for payment aggregators, marketplaces and ecommerce sellers, while leaving gaps for UPI, QR, app and payment-link transactions that have no website origin.

— Source publishedThu, 3 Sept, 2026, 17:18 IST·First seen Thu, 3 Sept, 2026, 18:08 IST·Source Medianama

What happened

Directorate General of GST Intelligence (DGGI) · DGGI has proposed requiring payment systems to retain originating-website and GST-linked bank-account records

Key facts

  • Rs 70,000 crore estimated betting ecosystem
  • 750 shell merchants
  • Rs 19,600 crore suspected GST evasion
  • 36 shell entities linked to Fino Payments Bank case
  • Rs 3,000 crore betting-linked transactions
  • 8,376 blocked betting and gambling URLs
  • More than 4,800 URLs blocked after the 2025 gaming law
  • 68.3% to 82% offshore gambling use
  • 3.4% to 42.3% daily offshore users

Why this matters

Prioritize partnerships or targets in merchant-KYC, payment-data infrastructure and compliance automation, while diligencing exposure to fragmented non-website payment channels.