CBIC Notification on supply of Online Gaming & Actionable Claims

CBIC notifies supply of online money gaming, supply of online gaming other than online money gaming and supply of actionable claims in casinos under section 15(5) of CGST Act vide Notification No. 49/2023 – Central Tax | Dated: 29th September, 2023

The Ministry of Finance, Department of Revenue, through the Central Board of Indirect Taxes and Customs (CBIC), has issued a crucial notification – Notification No. 49/2023 – Central Tax, dated 29th September, 2023. This notification carries significant implications as it pertains to the supply of online money gaming, online gaming (excluding money gaming), and actionable claims in casinos under section 15(5) of the Central Goods and Services Tax (CGST) Act, 2017.

Detailed Analysis:

1. Notified Supplies: The heart of this notification lies in its identification of specific supplies falling under section 15(5) of the CGST Act, 2017. It comprehensively includes:

• Supply of Online Money Gaming: This encompasses online platforms involved in games of chance or skill where real money transactions are involved. The notification provides clarity and regulatory oversight for this sector.
• Supply of Online Gaming (Excluding Money Gaming): Beyond online money gaming, this notification extends its reach to cover the broader category of online gaming, including games of various types and genres that don’t involve monetary transactions.
• Supply of Actionable Claims in Casinos: The notification also addresses the supply of actionable claims in casinos, introducing regulations and guidelines for this segment, ensuring taxation compliance.

2. Effective Date: The notification stipulates that these provisions will come into force on the 1st day of October, 2023.

Conclusion:

Notification No. 49/2023 – Central Tax is a pivotal step in the regulation and taxation of online money gaming, online gaming (excluding money gaming), and actionable claims in casinos. With these categories now explicitly defined and regulated under section 15(5) of the CGST Act, 2017, businesses, operators, and consumers within these sectors must prepare for compliance with the new framework.

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Ministry of Finance
(Department of Revenue)
(Central Board of Indirect Taxes and Customs)

Notification No. 49/2023-Central Tax | Dated: 29th September, 2023

G.S.R. 705(E).— 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, notifies 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.

2.  This notification shall come into force on the 1st day of October, 2023.

[F. No. CBIC-20016/29/2023-GST]

RAGHAVENDRA PAL SINGH, Director