The Central Board of Indirect Taxes and Customs (CBIC), through Notification No. 45/2023 – Central Tax G.S.R. 657(E), dated September 6, 2023, has officially introduced changes to the Central Goods and Services Tax Rules (CGST Rules), 2017. These changes involve the addition of new Rules 31B and Rule 31C.
Under the authority granted by section 164 of the Central Goods and Services Tax Act, 2017, the Central Government, based on the Council’s recommendations, has introduced the subsequent rules to amend the Central Goods and Services Tax Rules, 2017.
These rules may be called the Central Goods and Services Tax (Third Amendment) Rules, 2023 and came into force on 6th September 2023.
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.
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