Introduction: In a significant development, the Maharashtra Goods and Services Tax (Amendment) Ordinance, 2023 (Mah. Ord. VII of 2023) has been promulgated to make amendments to the Maharashtra Goods and Services Tax Act, 2017. This article delves into the key changes brought about by this ordinance and its implications for various sectors.
1. Short Title and Commencement: The ordinance’s first section establishes its name as the “Maharashtra Goods and Services Tax (Amendment) Ordinance, 2023.” It further specifies that Section 1 is immediately in effect, while the remaining sections will come into force as notified by the State Government. This flexibility allows staggered implementation.
2. Amendment of Section 2: This section introduces several new clauses to the Maharashtra Goods and Services Tax Act, 2017. Notably, it defines “online gaming,” “online money gaming,” “specified actionable claim,” and “virtual digital asset.” Additionally, it clarifies the tax liability of those organizing or facilitating the supply of specified actionable claims.
3. Amendment of Section 24: Section 24 sees amendments related to tax registration. It now mandates registration for those supplying online money gaming from outside India to individuals in India, ensuring compliance in this rapidly growing sector.
4. Amendment of Schedule III: Schedule III’s amendment replaces the reference to “lottery, betting, and gambling” with “specified actionable claims,” aligning the legislation with the evolving nature of these activities.
5. Transitory Provision: The ordinance concludes with a provision emphasizing that its amendments do not affect other laws regulating activities such as betting, casinos, gambling, horse racing, lottery, or online gaming. This ensures that the existing regulatory framework remains intact.
Conclusion: The Maharashtra Goods and Services Tax (Amendment) Ordinance, 2023, signifies a proactive step towards adapting tax laws to the digital age. By defining terms and addressing tax liabilities in the online gaming sector, the ordinance aims to provide clarity and uniformity in tax regulations. However, it maintains the balance by respecting the jurisdiction of other laws governing related activities. These changes underscore the importance of staying current with evolving tax regulations in a dynamic economic landscape.
In summary, this ordinance demonstrates the government’s commitment to keeping tax laws relevant and effective in an ever-changing business environment.
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MAHARASHTRA GOVERNMENT
FINANCE DEPARTMENT
Mantralaya, Madam Cama Marg, Hutatma Rajguru Chowk,
Mumbai 400 032, dated the 26th September 2023.
MAHARASHTRA ORDINANCE No. VII OF 2023.
AN ORDINANCE
further to amend the Maharashtra Goods and Services Tax Act, 2017.
WHEREAS both Houses of the State Legislature are not in session ;
AND WHEREAS the Governor of Maharashtra is satisfied that circumstances exist which render it necessary for him to take immediate Mah. action further to amend the Maharashtra Goods and Services Tax Act, 2017, of for the purposes hereinafter appearing ;
NOW, THEREFORE, in exercise of the powers conferred by clause (1) of article 213 of the Constitution of India, the Governor of Maharashtra is hereby pleased to promulgate the following Ordinance, namely :—
1. Short title and commencement.
(1) This Ordinance may be called the Maharashtra Goods and Services Tax (Amendment) Ordinance, 2023.
(2) Section 1 shall come into force at once and remaining sections shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Ordinance and any reference in any such provision to the commencement of this Ordinance shall be construed as a reference to the coming into force of that provision.
2. Amendment of section 2 of Mah. XLIII of 2017.
In section 2 of the Maharashtra Goods and Services Tax Act, 2017 (hereinafter referred to as “the principal Act”),—
(a) after clause (80), the following clauses shall be inserted, namely :—
“(80A) “online gaming” means offering of a game on the internet or an electronic network and includes online money gaming;
(80B) “online money gaming” means online gaming in which players pay or deposit money or money’s worth, including virtual digital assets, in the expectation of winning money or money’s worth, including virtual digital assets, in any event including game, scheme, competition or any other activity or process, whether or not its outcome or performance is based on skill, chance or both and whether the same is permissible or otherwise under any other law for the time being in force;”;
(b) after clause (102), the following clause shall be inserted, namely :—
“(102A) “specified actionable claim” means the actionable claim involved in or by way of,—
(i) betting;
(ii) casinos;
(iii) gambling;
(iv) horse racing;
(v) lottery; or
(vi) online money gaming;”;
(c) to clause (105), the following proviso shall be added, namely :—
“Provided that, a person who organizes or arranges, directly or indirectly, supply of specified actionable claims, including a person who owns, operates or manages digital or electronic platform for such supply, shall be deemed to be a supplier of such actionable claims, whether such actionable claims are supplied by him or through him and whether consideration in money or money’s worth, including virtual digital assets, for supply of such actionable claims is paid or conveyed to him or through him or placed at his disposal in any manner, and all the provisions of this Act shall apply to such supplier of specified actionable claims, as if he is the supplier liable to pay the tax in relation to the supply of such actionable claims;”;
(d) after clause (117), the following clause shall be inserted, namely :—
“(117A) “virtual digital asset” shall have the same meaning as assigned to it in clause (47A) of section 2 of the Income-tax Act, 1961 ; ”.
3. Amendment of section 24 of Mah. XLIII of 2017.
In section 24 of the principal Act,—
(a) in clause (xi), the word “and” occurring at the end, shall be deleted ;
(b) after clause (xi), the following clause shall be inserted, namely :—
“(xi-a) every person supplying online money gaming from a place outside India to a person in India ; and ”.
4. Amendment of Schedule III of Mah. XLIII of 2017.
In Schedule III appended to the principal Act, in paragraph 6, for the words “lottery, betting and gambling” the words “specified actionable claims” shall be substituted.
5. Transitory provision.
The amendments made under this Ordinance shall be without prejudice to provisions of any other law for the time being in force, providing for prohibiting, restricting or regulating betting, casinos, gambling, horse racing, lottery or online gaming.
STATEMENT
The Goods and Services Tax Council in its 50th and 51st meetings considered representation from various associations on the issues regarding taxability of Casinos, Horse Racing and Online Gaming and recommended to make certain amendments to provide clarity regarding taxability of Casinos, Horse Racing and Online Gaming. Accordingly, the Central Goods and Services Tax Act, 2017 (12 of 2017) has been amended by the Parliament by the Central Goods and Services Tax (Amendment) Act, 2023 (30 of 2023). In order to maintain the uniformity in applicability of the provisions of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017), it is considered expedient to amend the Maharashtra Goods and Services Tax Act, 2017.
2. The Salient Features of the proposed amendments to the Maharashtra Goods and Services Tax Act, 2017, are as follows :—
(i) define the expressions “online gaming”, “online money gaming”, “specified actionable claim” and “virtual digital asset” ;
(ii) insert a proviso in the definition of “supplier” to provide clarity regarding “supplier” in case of supply of “specified actionable claim” ;
(iii) insert a new clause in section 24 of the Act, to provide for mandatory registration of the person for supplying online money gaming, from a place outside India to a person in India ; and
(iv) to amend paragraph 6 of Schedule III of the Act, so as to provide clarity regarding taxability of actionable claims involved in or by way of casinos, horse racing and online gaming.
3. As both Houses of the State Legislature are not in session and the Governor of Maharashtra is satisfied that circumstances exist which render it necessary for him to take immediate action further to amend the Maharashtra Goods and Services Tax Act, 2017, for the purposes aforesaid, this Ordinance is promulgated.
Mumbai, RAMESH BAIS,
Dated the 26th September 2023. Governor of Maharashtra.
By order and in the name of the Governor of Maharashtra,
DR. NITIN KAREER,
Additional Chief Secretary to
Government.
