The Central Board of Indirect Taxes and Customs (CBIC) vide its Notification No.51/2023 Dated 29 September 2023, notified the Central Goods and Service Tax (Third Amendment) Rules 2023 by bringing amendments in many of the rules under the Central Goods and Service Tax Rules 2017 (The Principal Rule).
The purpose behind bringing this amendment by this CBIC notification is to bring the foreign OIDAR service providers and Foreign online gaming companies into the tax bracket. These amended rules will come into effect from 1st October 2023.
Let us delve into the important amendments brought through this CBIC Notification No. 51/2023. To know the amendments in more detail, readers can refer the original notification from the below given link.
Amendment in Rule 8 brought by CBIC Notification 51/2023
The Sub-rule (1) under rule 8 shall be substituted by the provisions as follows:
“(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 (13 of 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.”
Amendment under Rule 14
In the heading and sub-rule (1) of rule 14, the following line shall be inserted after “online receipt”:
“or to a person supplying online money gaming from a place outside India to a person in India.”
Amendment under Rule 31
“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.
Amendment under Rule 64
Rule 64 will be substituted by the following:
“64. Form and manner of submission of return by persons providing online information and data base 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 data base 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.”
Amendment in name of the Form GST REG-10
The heading of the Form GST REG-10 shall be changed as follows:
“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.”
Amendment in Form GSTR-5A
The Form GSTR-5A in the said rule is substituted by an amended version of GSTR-5A which can be accessed by downloading the Notification from the below given Link.
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i) vide notification No. 3/2017-Central Tax, dated the 19th June, 2017, published vide number G.S.R. 610(E), dated the 19th June, 2017 and were last amended, vide notification No. 38/2023 -Central Tax, dated the 4th August 2023, vide number G.S.R. 590 (E), dated the 4th August 2023.
Readers may follow the Link to access the original notification 51/2023 from CBIC official Site-https://taxinformation.cbic.gov.in/content-page/explore-notification
You may also Like to click the Link to read the recent CBDT Notification No.83/2023 inserting New Rule 21AHA & Form No. 10-IFA applicable to certain co-operative societies-https://anptaxcorp.com/cbdt-notifies-rule-21aha-of-income-tax/
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