New Rule 31B and 31C inserted in CGST Rules, 2017

New Rule 31B and 31C inserted in CGST Rules, 2017 – Notification No. 51/2023–Central Tax

G.S.R…(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 Aof FORM GST REG-01on 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.

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