On September 29, 2023, several crucial notifications related to the Goods and Services Tax (GST) were issued, bringing significant changes to the taxation landscape. These notifications cover a range of topics, from the applicability of GST to online gaming to amendments in valuation rules and registration requirements. In this article, we will provide a detailed analysis of these notifications and their implications for businesses and taxpayers.
Gist Of Central Goods & Service Tax Notifications Issued On 29.09.2023
1. Notification No. 48/2023: Appoints 1st October 2023 as the date on which the provisions of the Central Goods & Services (Amendment) Act, 2023 shall come into force.
2. Notification No. 49/2023: Notifies the following supplies under Section 15(5) of the CGST Act:
i. Supply of online money gaming
ii. Supply of online gaming, other than online money gaming
iii. Supply of actionable claims in casinos
Note: Sec 15(5) empowers the Government to make valuation rules in respect of such supplies as may be notified and the valuation mechanism prescribed under sub-section 1 to 4 of Section 15 will not apply to such supplies.
3. Notification No. 50/2023: Amends Notification No. 66/2017 – CT Dated 15.11.2017(which provides for an exemption on advance received in case of supply of goods) to state that registered persons making a supply of actionable claims as defined under Section 2(102A) will be liable to pay tax on advance received by them.
4. Notification No. 51/2023: Makes the following amendments to Central Goods & Services Tax Rules, 2017:
> Rule 8(1) lists the category of suppliers who do not need to declare information as required in Part A of Form GST REG 01. The said rule is amended to include a person supplying online money gaming from a place outside India to a person in India referred to in Section 14A of the IGST Actin the list of persons who need not declare information as required in Part A of Form GST REG 01.
> Rule 14 of the said Rules is being amended to include the following: A person supplying online money gaming from a place outside India to a person in India shall apply for registration in Form GST REG 10 on the common portal.
> In the said rules, after Rule 31A, Rule 31B, which deals with the valuation of supply in connection with online gaming, including online money gaming, and Rule 31C, which deals with the valuation of supply in connection with casinos, shall be inserted.
> In the said rules, proviso to Rule 46(f) is being amended to include the following: In cases involving supply of online money gaming to a recipient who is unregistered, irrespective of the value of such supply, a tax invoice issued by the registered person shall contain the name of the state of the recipient and the same shall be deemed to be the address on record of the recipient.
> Rule 64 is being substituted to state 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.
> Second proviso to Rule 87(3) of is being amended to include the following: A person supplying online money gaming from a place outside India to a person in India as referred to in Section 14A of the IGST Act, may make the deposit under sub-rule (2) through international money transfer through Society for Worldwide Interbank Financial Telecommunication payment network.
> Necessary amendments made to Form GST REG 10in connection with application for registration of person supplying online money gaming from a place outside India to a person in India and Form GSTR 5A in connection with Details of supplies of online money gaming by a person located outside India to a person in India
A Gist Of Notifications – Integrated Tax – Issued On 29.09.2023
1.Notification No. 02/2023: Appoints 1st October 2023as the date on which the provisions of the Integrated Goods & Services (Amendment) Act, 2023 shall come into force.
2. Notification No.03/2023: Notifies supply of online money gaming as goods, on import of which IGST shall be levied on the value determined under section 15 of the Central Goods and Services Tax Act. Further provisions of section 3 of the Customs Tariff Act, 1975 shall not apply to such imports.
3. Notification No.04/2023:Notifies the Principal Commissioner of Central Tax, Bengaluru West and all the officers subordinate to him as the officers 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
Note: All the above mentioned notifications shall come into effect from 01.10.2023.
Conclusion
These GST notifications issued on September 29, 2023, bring substantial changes to the taxation of online gaming, actionable claims, and advance payments. The notifications not only specify effective dates but also introduce critical amendments to rules and regulations governing GST. Businesses and taxpayers impacted by these changes must ensure compliance with the new provisions and stay informed about their implications.
******
Disclaimer: The observations made above are based on my understanding of the law. The adjudicating authorities, courts etc may have a completely different view on the same. The information provided in this tax alert does not, and is not intended to constitute legal advice. Instead, all information and content herein are for general informational purposes only.
Author Bio
