Notification No. 51/2023 – Central Tax Dated 29th September, 2023
The Central Goods and Services Tax (Third Amendment) Rules, 2023 have been notified by the Central Board of Indirect Taxes and Customs (CBIC) in order to alter the Central Goods and Services Tax Rules, 2017. On January 10th, 2023, the provisions will go into effect.
Rule 8, sub-rule (1) has been replaced with a provision relating to online gaming, according to which a person who supplies online money gaming from a location outside of India to a person in India must declare his Permanent Account Number, State or Union territory in Part A of FORM GST REG-01 on the common portal, either directly or through a Facilitation Center informed by the Commissioner, before applying for registration.
Now, the Input Service Distributor will have to make a separate application for registration.
Earlier, Rule 14 related only to “Grant of registration to a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient”.
Now, rule also covers grant of registration to a person supplying online money gaming from a place outside India to a person in India. Rule 31-B has been inserted relating to “Value of supply in case of online gaming including online money gaming”.
According, to this rule, the value of supply of online gaming, including supply of actionable claims involved in online money gaming, will be the total amount paid or payable to or deposited with the supplier by way of money or money’s worth, including virtual digital assets, by or on behalf of the player.
In case, any amount is returned or refunded by the supplier, including player not using the amount paid or deposited for participating in any event, will not be deductible from the value of supply of online money gaming. Rule 31-C has been inserted relating to “Value of supply of actionable claims in case of casino”.
The value of supply of actionable claims in casino should be the total amount paid or payable by or on behalf of the players for purchase of tokens, chips, coins or tickets for use in casino or participation in any event, including game, scheme, competition in the casino.
Any amount refunded by the casino in return of tokens, coins, chips or tickets will not be deductible from the value of the supply of actionable claims in the casino.
Earlier, Rule 64 relating to Form and manner of submission of return by persons providing online information and database access or retrieval services been substituted, which now lays down the Form and manner of submission of returns by persons supplying online money gaming from a place outside India to a person in India.
Form GSTR-5A has been substituted.