Maharashtra Govt notifies MGST Amendment Act, 2023 inserting Online Gaming Provisions

The Maharashtra Government has passed the Maharashtra Goods and Services (Second Amendment) Act, 2023 with a specific focus on addressing concerns related to ‘Online Gaming’ and ‘Online Money Gaming.’ The enactment of this Act serves to nullify the Maharashtra Goods and Services Tax (Amendment) Ordinance, 2023, dated September 26, 2023.

Under the recent amendment, Section 2 now includes two additional clauses following clause 80: clause 80A, which provides the definition of “online gaming,” and clause 80B, defining “online money gaming.” Furthermore, the new act also elucidates the meaning of Virtual Digital Assets.

Clause 80A : “online gaming” means offering of a game on the internet or an electronic network and includes online money gaming;

Clause 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;”;

Clause 117: “virtual digital asset” shall have the same meaning as assigned to it in clause (47A) of section 2 of the Income-tax Act, 1961 ; ”

After the convening of the 50th and 51st GST Council Meetings in October 2023, a notable development occurred as several States and Union Territories promptly took action by issuing Ordinances. The purpose of these legislative measures was to integrate amendments related to ‘Online Gaming’ into their respective legal frameworks. This swift and synchronised response reflects a collaborative initiative, indicating a collective and unified approach adopted by various regions. The primary objective is to address and regulate aspects concerning online gaming activities, showcasing a coordinated effort to establish consistent guidelines and oversight across diverse geographical areas.

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