The Central Government through the Central Board of Indirect Taxes and Customs (CBIC) through gazette notifications have amended the Central Goods and Services Tax Rules to facilitate the levy of Goods and Services Tax (GST) on Online Gaming, Online Money Gaming and Actionable Claims in Casinos.
In exercise of the powers conferred under sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Government, on the recommendations of the Council, notified the following supplies under the said sub-section, namely:—
(i) supply of online money gaming;
(ii) supply of online gaming, other than online money gaming; and
(iii) supply of actionable claims in casinos.
In addition, the notifications also carry out amendments in Form GSTR-5A and make provisions under the Integrated Goods and Services Tax (IGST) Rules for smooth levy of GST on Online Gaming, online money gaming and actionable claims in casinos.
Further, In exercise of powers conferred under proviso to sub-section (1) of section 5 of the Integrated Goods and Services Tax Act, 2017, the Government, on the recommendations of the Council, notifies the supply of online money gaming as the goods on import of which the proviso to sub-section (1) of section 5 of the said Act shall not apply, but on which integrated tax shall be levied and collected under sub-section (1) of section 5 of the said Act.
Form GSTR 5A was amended for reporting of Details of supplies of online information and database access or retrieval services by a person located outside India made to non-taxable online recipient (as defined in Integrated Goods and Services Tax Act, 2017) and to registered persons in India and details of supplies of online money gaming by a person located outside India to a person in India.
Additionally, the Heading of Form GST REG-10 was also reworked as ““Application for registration of person supplying online money gaming from a place outside India to a person in India or for registration of person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient in India.”
The Principal Commissioner of Central Tax, Bengaluru West and all the officers subordinate to him are empowered to grant registration in case of supply of online money gaming provided or agreed to be provided by a person located in non-taxable territory and received by a person in India, by the amendments.
The following changes were also made to Central Goods and Services Tax Rules to facilitate the levy of the newly imposed GST on Online Gaming, Online Money Gaming and Actionable Claims in Casinos : —
In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in rule 8, for sub-rule (1), the following sub-rule shall be substituted, namely:–
“(1) Every person who is liable to be registered under sub-section (1) of section 25 and every person seeking registration under sub-section (3) of section 25 (hereafter in this Chapter referred to as “the applicant”), except–
(i) a non-resident taxable person;
(ii) a person required to deduct tax at source under section 51;
(iii) a person required to collect tax at source under section 52;
(iv) a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14 or a person supplying online money gaming from a place outside India to a person in India referred to in section 14A under the Integrated Goods and Services Tax Act, 2017 shall, before applying for registration, 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 Centre notified by the Commissioner:
Provided that every person being an Input Service Distributor shall make a separate application for registration as such Input Service Distributor.”
In the said rules, in rule 14, –
(i) in the heading, after the words “online recipient” the letters and words “or to a person supplying
online money gaming from a place outside India to a person in India” shall be inserted;
(ii) in sub-rule (1), after the words “online recipient” the letters and words “or any person supplying
online money gaming from a place outside India to a person in India” shall be inserted.
In the said rules, after rule 31A, the following rules shall be inserted, namely:-
“31B. Value of supply in case of online gaming including online money gaming.–
Notwithstanding anything contained in this chapter, the value of supply of online gaming, including supply of actionable claims involved in online money gaming, shall 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:
Provided that any amount returned or refunded by the supplier to the player for any reasons whatsoever, including player not using the amount paid or deposited with the supplier for participating in any event, shall not be deductible from the value of supply of online money gaming.
31C. Value of supply of actionable claims in case of casino.– Notwithstanding anything contained in this chapter, the value of supply of actionable claims in casino shall be the total amount paid or payable by or on behalf of the player for –
(i) purchase of the tokens, chips, coins or tickets, by whatever name called, for use in casino; or
(ii) participating in any event, including game, scheme, competition or any other activity or process, in the casino, in cases where the token, chips, coins or tickets, by whatever name called, are not required:
Provided that any amount returned or refunded by the casino to the player on return of token, coins, chips, or tickets, as the case may be, or otherwise, shall not be deductible from the value of the supply of actionable claims in casino.
Explanation.- For the purpose of rule 31B and rule 31C, any amount received by the player by winning any event, including game, scheme, competition or any other activity or process, which is used for playing by the said player in a further event without withdrawing, shall not be considered as the amount paid to or deposited with the supplier by or on behalf of the said player.”
5. In the said rules, in rule 46, in clause (f), in the proviso, after the words “Provided that” the words “in cases involving supply of online money gaming or in cases” shall be inserted.
6. In the said rules, for rule 64, the following rule shall be substituted, namely: –
“64. Form and manner of submission of return by persons providing online information and database access or retrieval services and by persons supplying online money gaming from a place outside India to a person in India.- Every registered person either providing online money gaming from a place outside India to a person in India, or providing online information and database access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) or to a registered person other than a non-taxable online recipient, shall file return in FORM GSTR-5A on or before the twentieth day of the month succeeding the calendar month or part thereof.”
7. In the said rules, in rule 87, in sub-rule (3), in the second proviso, for the words and figures “section 14”, the words, letters, brackets and figures “section 14, or a person supplying online money gaming from a place outside India to a person in India as referred to in section 14A,” shall be substituted.
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