In a significant development, the Ministry of Finance, Department of Revenue, and the Central Board of Indirect Taxes and Customs (CBIC) have introduced the Central Goods and Services Tax (Third Amendment) Rules, 2023, through Notification No. 51/2023-Central Tax, dated 29th September, 2023. These rules, made under the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (CGST Act), bring notable changes to the existing tax framework.
Detailed Analysis:
Short Title and Commencement: The Central GST (Third Amendment) Rules, 2023, are formally named and shall come into force on the 1st day of October, 2023. This effective date signifies the commencement of the new rules, impacting various aspects of GST compliance.
Rule 8 Amendment: Rule 8 of the CGST Rules, 2017, is amended to specify that every person liable to be registered under section 25(1) or seeking registration under section 25(3), excluding certain categories such as non-resident taxable persons and those required to deduct or collect tax at source, must declare their Permanent Account Number (PAN) and State or Union Territory in FORM GST REG-01 before applying for registration. Input Service Distributors are required to make separate registration applications.
Rule 14 Amendment: Rule 14 is amended to include persons supplying online money gaming from outside India to a person in India within the scope of this rule. This implies that certain tax provisions are applicable to such supplies.
New Rules 31B and 31C: Rules 31B and 31C are introduced, specifying the valuation methods for online gaming and actionable claims in casinos, respectively. The rules detail the determination of the value of supplies in these sectors, including considerations like total amounts paid by players.
Rule 46 Amendment: Rule 46 is amended to specify that certain cases involving the supply of online money gaming require special considerations.
New Rule 64: Rule 64 outlines the form and manner of submission of returns by persons providing online information and database access or retrieval services and persons supplying online money gaming from outside India to a person in India.
Rule 87 Amendment: Rule 87 is amended to incorporate provisions related to persons supplying online money gaming from outside India to a person in India, aligning with section 14A of the CGST Act.
Changes in Form GST REG-10: Form GST REG-10 is revised to accommodate applications for registration of persons supplying online money gaming from outside India to a person in India and for registration of persons supplying online information and database access or retrieval services from outside India to a non-taxable online recipient in India.
New Form GSTR-5A: Form GSTR-5A is introduced to capture details of supplies of online information and database access or retrieval services made to non-taxable online recipients in India and to registered persons in India, as well as details of supplies of online money gaming from outside India to a person in India.
Conclusion:
Notification No. 51/2023 – Central Tax introduces the Central Goods and Services Tax (Third Amendment) Rules, 2023, effective from October 1, 2023. These rules encompass changes in registration procedures, valuation of online gaming supplies, and various tax-related aspects. Businesses and individuals operating within these sectors, including online gaming and online information services, must adhere to the updated regulations outlined in these amendments. Compliance with these rules is crucial to ensure smooth operations and avoid potential penalties or non-compliance issues within the GST framework.
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Ministry of Finance
(Department of Revenue)
(Central Board of Indirect Taxes and Customs)
Notification No. No. 51/2023-Central Tax | Dated: 29th September, 2023
G.S.R. 707(E).— In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council and in supersession of the Central Goods and Services Tax Rules (Third Amendment) Rules, 2023, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely: —
1. Short title and commencement. -(1) These rules may be called the Central Goods and Services Tax (Third Amendment) Rules, 2023.
(2) Save as otherwise provided in these rules, they shall come into force on the 1st day of October, 2023.
2. 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 (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.”
3. 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.
4. 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 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.”
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.
9. In the said rules, in FORM GST REG-10, –
(i) for the heading, the following heading shall be substituted, namely—
“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.”;
(ii) in Part A, in the table, after serial number (ii) and the entries relating thereto, the following serial number and entries shall be inserted, namely:
| “(ii a) | Type of supply | (a) Supply of online money gaming
(b) Supply of online information and database access or retrieval services (c) Both (a) and (b) above” |
(iii) in Part B, in the table, —
(a) for serial numbers 2 and 3 and the entries relating thereto, the following serial numbers and entries shall be substituted, namely:
| “2. | Date of commencement of the online service or online money gaming in India. | DD/MM/YYYY |
| 3 | Uniform Resource Locators (URLs) of the website/platform/name of the application, etc, as applicable through which online money gaming or online information and database access or retrieval services are provided: | |
| 1. | ||
| 2. | ||
| 3.” | ||
(b) for serial number 7 and the entries relating thereto, the following serial number and entries shall be substituted, namely:
|
“7 |
Declaration
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom. I, _ …………………………. hereby declare that I am authorised to sign on behalf of the Registrant. I would charge and collect tax liable from the non-taxable online recipient located in taxable territory(in case of online information and database access or retrieval services) and/or from the recipient located in taxable territory (in case of online money gaming) and deposit the same with Government of India. |
|
Signature Name of Authorised Signatory: Designation:” Place: Date: |
(iv) in the Instructions, in item 2, after the words and figures “section 14”, the words and figures “or section 14A, as the case may be,” shall be inserted.
9. In the said rules, for FORM GSTR-5A, the following form shall be substituted namely:–
“FORM GSTR-5A
[See rule 64]
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
1. GSTIN of the supplier-
2. (a) Legal name of the registered person –
(b) Trade name, if any –
3. Name of the Authorised representative in India filing the return –
4. Period: Month – ______ Year –
4 (a) ARN:
4 (b) Date of ARN:
5. Taxable outward supplies of online information and database access or retrieval services made to non-taxable online recipient in India
(Amount in Rupees)
| Place of supply (State/UT) | Rate of tax | Taxable value | Integrated tax | Cess |
| 1 | 2 | 3 | 4 | 5 |
5A. Amendments to taxable outward supplies of online information and database access or retrieval services to non- taxable online recipient in India
(Amount in Rupees)
| Month | Place of supply (State/UT) | Rate of tax | Taxable value | Integrated tax | Cess |
| 1 | 2 | 3 | 4 | 5 | 6 |
5B. Taxable outward supplies of online information and database access or retrieval services made to registered persons in India, other than non-taxable online recipient, on which tax is to be paid by the said registered persons on reverse charge basis
(Amount in Rupees)
| GSTIN | Taxable Value |
| 1 | 2 |
5C. Amendments to the taxable outward supplies of online information and database access or retrieval services made to registered persons in India, other than non-taxable online recipient, on which tax is to be paid by the said registered persons on reverse charge basis
(Amount in Rupees)
| Month | Original GSTIN |
Revised GSTIN | Taxable value |
| 1 | 2 | 3 | 4 |
5D. Supplies of online money gaming made to a person in India
(Amount in Rupees)
| Place of supply (State/UT) | Rate of tax | Taxable value | Integrated tax | Cess |
| 1 | 2 | 3 | 4 | 5 |
5E. Amendments to supplies of online money gaming made to a person in India
(Amount in Rupees)
| Month | Place of supply (State/UT) | Rate of tax | Taxable value | Integrated tax | Cess |
| 1 | 2 | 3 | 4 | 5 | 6 |
6. Calculation of interest, or any other amount
(Amount in Rupees)
| Sr. No |
Description | Place of
supply(State/UT) |
Amount due (Interest/ Other) | |
| Integrated tax | Cess | |||
| 1 | 2 | 3 | 4 | 5 |
| 1. | Interest | |||
| 2. | Others | |||
| Total | ||||
7. Tax, interest, and any other amount payable and paid
(Amount in Rupees)
| Sr. No. | Description | Amount payable | Debit entry no. |
Amount paid | ||
| Integrated Tax | Cess | Integrated Tax | Cess | |||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| 1. | Tax Liability (based on Table 5, 5A, 5D and 5E) | |||||
| 2. | Interest (based on Table 6) | |||||
| 3. | Others (based on Table 6) | |||||
Verification
I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom.
Signature
Name of Authorised Signatory
Designation /Status”
Place
Date
[F. No. CBIC-20016/29/2023-GST]
RAGHAVENDRA PAL SINGH, Director
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (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.
