GSTN Advisory Dt. 17 October 2023
In light of recent amendments to the CGST/SGST Act, the IGST Act, and the CGST/SGST Rules, individuals or entities situated outside the taxable territory, providing online money gaming services to individuals within the taxable territory, are now obligated to register under the GST and remit taxes for such services.
Consequently, any person located outside the taxable territory, engaging in the supply of online money gaming to an individual in India, must complete the necessary registration or amend their existing registration using the proposed Row (iia) in FORM GST REG-10. Additionally, they are required to provide information regarding these supplies in the proposed Tables within FORM GSTR-5A. The GSTN is currently in the process of developing the functionality for these new registrations or amendments.
In the interim, until the new functionality becomes available on the portal, we recommend following the workaround outlined below:
Registration (Form GST REG-10)
As per the proposed amendments, individuals or entities involved in the supply of online money gaming must identify themselves as engaged in such services within Form GST REG-10. New registrations related to these services may be necessary, and applications for registration should be filed using FORM GST REG-10. The ‘Type of Supply’ must be declared in Row (iia) of Form GST REG-10 when applying for registration. Existing registered taxpayers of OIDAR services must also amend their registrations by providing the required information in Row (iia).
As a workaround, we advise that individuals or entities engaged in the supply of online money gaming, in compliance with the recent amendments, can submit their registration application using the existing Form GST REG-10. Along with the application, these entities should upload a PDF copy of the information supplied in Row 2(iia) of the amended FORM GST REG-10 in the ‘Documents Upload’ section available in Part-A of Form GST REG-10 (following the provided format).
Return (Form GSTR-5A)
Those engaged in the supply of online money gaming must furnish details of these supplies in Table 5D and 5E of Form GSTR-5A.
Until these tables are incorporated into Form GSTR-5A on the portal, individuals or entities involved in providing online money gaming services are advised to provide the details of such supplies in the existing Tables 5 and 5A of Form GSTR-5A itself.
According to the GSTN advisory, the above procedure can be followed until the changes are implemented on the GST Portal. Stay compliant with these updated requirements to ensure a seamless registration and return filing process for online money gaming and OIDAR services within the GST framework.
To access the GSTN Advisory in GST portal CLICK HERE
To access the GSTN Update on Functionality for enrolling unregistered persons CLICK HERE
CBDT Notification No. 89/2023 Dt. 16 October 2023: Amendment in Rule 37BB