The Maharashtra Authority of Advance Ruling (AAR) ruled that 18% GST applicable on the service of Online Gaming.
The Applicant, Mr. Amogh Ramesh Bhatawadekar is a supplier in digital goods i.e. online games. He is located at Thane and has not obtained GSTIN under the impression that whatever services they are rendering is export of e-goods. It is a proprietary concern.
The applicant has sought advance ruling on various issues.
Firstly, whether “e-goods” as commercially known in the market are “goods” as defined in the GST Acts or are they services as per GST Act.
The coram consists of T.R. Ramnani and P.Vinitha Shekhar ruled that E-goods, in this case ‘Online Gaming’ will be covered under services under the GST Act.
Secondly, if they are services what is SAC classification and rate of GST on its sale/ supply within the state?
The AAR ruled that the SAC for the online gaming will be 998439 and 18% GST will be applicable on the service supplied by the applicant.
Thirdly, under what circumstances IGST under reverse charge will be applicable or whether it is applicable in the situation of procurement from foreign suppliers and supply from out of India.
The AAR said that in the situation of procurement from foreign suppliers & supply from out of India the applicant has to discharge IGST liability under reverse charge mechanism.
Fourthly, if the customer is from India and paying the consideration in dollar, whether it will be allowed as exports or if not allowed as exports then whether GST is leviable. What is the rate of SGST & CGST or IGST. Under which SAC.
The Authority said that since both, the customer and the applicant are in India. GST would be liable at the rate of 18% under SAC 998439.
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