Important Keyword: Notification No. 45/2023 – Central Tax, CGST Rule Amendments 2023, GST on Online Gaming, GST on Casino Supply, CGST Rule 31B 31C, GST Supply Valuation, GST 2023 updates,
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Table of Contents
[F. No. CBIC-20/2/2023-GST]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
New Delhi, dated the 06th September, 2023.
Notification No. 45/2023 – Central Tax: Seeks to make amendments (Third Amendment, 2023) to the CGST Rules, 2017.
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)]
G.S.R… (E). –In exercise of the powers conferred by section 164 of the CGST Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following rules further to amend the CGST 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) They shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
2. In the Central Goods and Services Tax Rules, 2017, 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 –
- purchase of the tokens, chips, coins or tickets, by whatever name called, for use in casino; or
- 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.”
Director
(Raghavendra Pal Singh)
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide notification number 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.
📚 Frequently Asked Questions (FAQs): Notification No. 45/2023 – Central Tax
Q1: What is Notification No. 45/2023 – Central Tax about?
Answer:
📢 Notification No. 45/2023, issued on 6th September 2023, amends the CGST Rules, 2017 by inserting new rules 31B and 31C. These rules define the value of supply for online gaming and casino-related services, aiming to streamline taxation for these digital and entertainment sectors.
Q2: What is Rule 31B and what does it cover? 🎮
Answer:
Rule 31B addresses the valuation of supply in online gaming, including online money gaming. The taxable value shall include the total amount deposited with or paid to the supplier by the player—including via virtual digital assets—excluding any refunds or unused amounts.
Q3: Can refunded or unused player funds be excluded from GST value? ❌💰
Answer:
No, the new Rule 31B clearly states that any amount refunded or unused by the player is not deductible from the taxable value. Even if the player doesn’t participate using the amount, it is still taxable.
Q4: What is Rule 31C and its relevance to casinos? 🎰
Answer:
Rule 31C applies specifically to casinos. The value of supply includes all amounts paid by the player to buy tokens, chips, or to participate in any game or event. Again, refunds (e.g., for unused tokens) are not deductible.
Q5: Are winnings reused in games considered as deposits for GST? 🏆↩️
Answer:
No. According to the Explanation under the new rules, if a player uses previous winnings for further gameplay without withdrawing them, such winnings are not treated as fresh deposits for GST valuation.
Q6: When did these rules come into effect? 📅
Answer:
The Notification states that the rules shall come into force on the date notified in the Official Gazette. Keep an eye on Finodha’s GST updates for real-time activation dates.
Q7: Who is impacted by this notification? 👥
Answer:
Entities offering:
Online gaming platforms
Online betting or wagering
Casinos (offline or online)
All are now required to comply with the new valuation method for determining GST.
Q8: Where can I get help to comply with the new GST rules? 🧑💼
Answer:
You can get expert assistance on GST compliance through Finodha’s professional services. Start here 👉 https://finodha.in/gst-compliance/
🧮 Examples:
- 🎮 Online Gaming: If a player deposits ₹1,000 to play, and ₹300 remains unused or is refunded later, GST will still apply on ₹1,000.
- 🎰 Casino: A player purchases chips worth ₹5,000 and returns unused chips worth ₹1,000. GST is applicable on the full ₹5,000.
🔚 Conclusion:
Notification No. 45/2023 – Central Tax modernizes the GST treatment of digital entertainment and casino transactions by setting a clear valuation basis. Businesses must update their compliance processes to reflect these rules. For hassle-free filings, consult trusted GST professionals at www.Finodha.in today!
📌 Stay GST-smart, stay compliant! 💼
Download PDF: Notification No. 45/2023 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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