This articles covers the latest gst updates summary September 2023. It contains all the Notifications and Circulars issued in September 2023 which covers all GST Updates in September 2023. All these amendments have been presented hear topic wise and reference of relevant latest gst notifications and latest gst circulars have been given at bottom of each topic. As well as, I have given our own analysis wherever it is necessary.
Introduction of New Rule for value of supply for online gaming and casinos
The Government has inserted Rule 31B & 31C of CGST Rules, 2017 for Value of supply in case online gaming including online money gaming & Value of supply of actionable claims in case of casino. The summary for the Rule are as under:
| Rule-31B (Online Gaming) | |
| Heading | Description |
| What it covers | Value of supply for online gaming, including online money gaming. |
| Valuation | Total amount paid or payable by player to the supplier (money, virtual assets). |
| Exclusion | Refunded amounts not deductible from value of supply. |
| Explanation | Regarding winnings: Amounts used for further play without withdrawal not considered as paid to supplier. Purpose: Ensures GST levied only on player’s actual spend, prevents tax circumvention through winnings. |
| Rule-31C (Casino Actionable Claims) | |
| Heading | Description |
| What it covers | Value of supply for actionable claims in casinos. |
| Valuation | Total amount paid or payable by player for tokens, chips, or event participation. |
| Exclusion | Refunded amounts not deductible from value of supply. |
| Explanation | Regarding winnings: Amounts used for further play without withdrawal not considered as paid to supplier. Purpose: Ensures GST levied only on player’s actual spend, prevents tax circumvention through winnings. |
Example: If you pay Rs. 1000 for chips, win Rs. 500, and cash out Rs. 500, the supply value is Rs. 1000 (excluding the winnings). Similarly, if you win Rs. 500 in a game but use it to play another without withdrawal, the supply value remains the initial amount paid.
Appointment of Officers for Adjudication of Tax Notices
The Board appoints officers mentioned in Column (5) to act as authorities to exercise the powers and discharge the duties conferred or imposed on officers mentioned in column (4) e in respect of noticee mentioned in column (2) for adjudicating notices mentioned in Column No. (3).
| Sr No | Name of Notice & Address | Notice Number & Date | Name of Adjudicating Authority | Name of Authority |
| (1) | (2) | (3) | (4) | (5) |
| 1 | M/s Inkuat Infrasol Pvt. Ltd., 1st Floor, H.No.2067/8, Flat No. 101,EWing,Roopkamal Plaza,opp.Rajlaxmi kalher-Thane, Bhiwandi, Thane-421302 | 39/PK/Inkuat/2021-22 dated 25.03.2022 | Joint-or Additional Commissioner, CGST and Central-Excise Bhiwandi Commissionerate | Joint or Additional Commissioner, CGST and Central Excise Thane Commissionerate [holding the charge of adjudication of DGGI Cases]. |
Special procedure provided to be followed by Registered Person engaged in manufacturing of Goods specified in Schedule in Notification Effective from 01-01-2024.
Notification 30/2023 Central Tax dated 31.07.2023 has specified the special procedure to be followed by registered persons engaged in manufacturing of following goods shall be Effective from 01-01-2024 which shall be deemed to have been inserted with effect from 31-07-2023.
| S.No | Chapter/Heading/Sub heading/Tariff Item | Description of Goods |
| 1 | 21069020 | Pan-Masala |
| 2 | 2401 | Unmanufactured tobacco (without lime tube) – bearing a brand name |
| 3 | 2401 | Unmanufactured tobacco (with lime tube) – bearing a brand name |
| 4 | 24013000 | Tobacco refuse, bearing a brand name |
| 5 | 24031110 | “Hookah” or “gudaku” tobacco bearing a brand name |
| 6 | 24031110 | Tobacco used for smoking ‘hookah’ or ‘chilam’ commonly known as ‘hookah’ tobacco or ‘gudaku’ not bearing a brand name |
| 7 | 24031190 | Other water pipe smoking tobacco not bearing brand name |
| 8 | 24031910 | Smoking mixtures for pipes and cigarettes |
| 9 | 24031990 | Other smoking tobacco bearing brand name |
| 10 | 24031990 | Other smoking tobacco not bearing brand name |
| 11 | 24039100 | “Homogenised” or “reconstituted” tobacco, bearing a brand name |
| 12 | 24039910 | Chewing tobacco (without lime tube) |
| 13 | 24039910 | Chewing tobacco (without lime tube) |
| 14 | 24039910 | Filter khaini |
| 15 | 24039920 | Preparations containing chewing tobacco |
| 16 | 24039930 | Jarda Scented tobacco |
| 17 | 24039940 | Snuff |
| 18 | 24039950 | Preparations containing Snuff |
| 19 | 24039960 | Tobacco extracts and essence bearing brand name |
| 20 | 24039960 | Tobacco extracts and essence not bearing brand name |
| 21 | 24039970 | Cut tobacco |
| 22 | 24039990 | Pan masala containing tobacco ‘Gutkha’ |
| 23 | 24039990 | All goods, other than pan masala containing tobacco ‘gutkha’, bearing a brand name |
| 24 | 24039990 | All goods, other than pan masala containing tobacco ‘gutkha’, not bearing a brand name |
Note: Registered person must maintain following details as per the format prescribed in the notification
| Sr No. | Particulars | Time to furnish the details on the common portal |
| 1 | Details of Packing Machines in FORM SRM-I | Within 30 days of issue of this notification |
| 2 | Details of installations of additional machine/(s) in FORM SRM-IIA | Details of any existing filling and packing machine removed from registered place of business shall be furnished within 24 hours of such removal in FORM SRM-IIB |
| 3 | Details of removal of the existing machines in FORM SRM-IIB | |
| 4 | Input Register in FORM SRM- IIA | |
| 5 | Production Register in FORM SRM-IIB | |
| 6 | Special Monthly Statement in FORM SRM-IV Part-A : Monthly statement of inputs used Part-B : Statement of production of goods | Each Month statement submit on common portal on or before 10th day of the month succeeding such month |
GST on Online Gaming and Online Money Gaming
Central Goods and Service Tax (Amendment) Act, 2023 shall come into effect from 01-10-2023.
Central Goods and Service Tax (Amendment) Act, 2023 (30 of 2023) Contains following :
- Amendment in Section -2 i.e in definitions. Definitions of Online gaming (80A), Online Money gaming (80B) , Specified Actionable Claim (102A) along with Proviso (105) & Virtual Digital assets (117A) has been added which comes in to effect from 01-10-2023.
- In Schedule III for the words “lottery, betting and gambling” the words “specified actionable claims” shall be substituted.
- Clause (XIA) under section 24 added states Compulsory registration for “every person supplying online money gaming from a place outside India to a person in India”;
Transitory Provision : The amendments made under this Act shall be without prejudice to provisions of any other law for the time being in force, providing for prohibiting, restricting or regulating betting, casino, gambling, horse racing, lottery or online gaming
Separate Valuation Rules for Online gaming. Money gaming and Actionable claim in casino w.e.f 01-10-2023
CBIC has notified the following supplies for which separate valuation rules shall be applicable w.e.f. 01.10.2023.
(i) Online money gaming;
(ii) Online gaming, other than online money gaming; and
(iii) Actionable claims in casinos.
Separate Valuation rules has been mentioned vide Rule 31B and Rule 31C of the CGST Rules, 2017.
Our analysis:
The Central Goods and Services Tax (Amendment) Act, 2023, which comes into effect on October 1, 2023, notifies the following supplies under sub-section (5) of section 15(Value of Taxable supply) of the Central Goods and Services Tax Act, 2017:
- Online money gaming
- Online gaming, other than online money gaming
- Supply of actionable claims in casinos
This means that these supplies will now be valued as per Rule 31B and Rule 31C of CGST Rules 2017 for the GST calculation.
Change in Time of Supply of Certain Goods
Time of Supply of Goods has been changed for Registered Person involved in Supply of following:
(I) Betting;
(ii) Casinos;
(iii) Gambling;
(iv) Horse racing;
(v) Lottery; or
(vi) Online money gaming
Our Analysis:
Government has amend the notification No.66/2017 dated 15-11-2017 by inserting words “other than the registered person making supply of specified actionable claims as defined in clause (102A)
of section 2 of the said Act after the words ““composition levy under section 10 of the said Act” in the notification.
Notification 66/2017 states that all registered persons under the GST Act, other than those who have opted for the composition levy, are required to pay the central tax on their outward supply of goods at the time of supply. This includes situations where the provisions of section 14 of the Act are attracted.
Earlier, GST was not required to be paid at the time of receipt of advance in case of supply of goods. Now, for the above specified category of actionable claims, GST is also required to be paid at the time of receipt of advance.
Actionable Claims are treated as goods as per Definition of Goods u/s 2(52) of the CGST Act, 2017.
Changes in CGST Rules 2017
CBIC has notified the Central Goods and Services Tax (Third Amendment) Rules.2023. Earlier, Rule – 31B and Rule 31C (Valuation Rules for Online Gaming, Online Money Gaming and Casino) were introduced via Notification No. 45/2023 – Central Tax, dated 06.09.2023. Now, those rules have been superseded by this Notification.
Our Analysis:
| Changes in Rules,2017 | Summary |
| Rule -8 (1) : Application for Registration | Person supplying Online gaming from outside india to person in india u/s14A of IGST Act 2017(13of 2017) is added for exception to declare their PAN and State or Union Territory in Part A of Form GST REG-01 on the common portal before applying for registration. |
| Rule -14 Grant of registration to a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient | Changes in the Heading of Rule 14 for online money gaming |
| Now along with online information and database access or retrieval services provider, online money gaming service provider from a place outside India to a person in India must electronically submit an application for registration in FORM GST REG-10 on the common portal. | |
| Rule 31B-. Value of supply in case of online gaming including online money gaming.– | New Rule Inserted . (See Analysis-1) Earlier, Rule – 31B and Rule 31C (Valuation Rules for Online Gaming, Online Money Gaming and Casino) were introduced via Notification No. 45/2023 – Central Tax, dated 06.09.2023. Now, those rules have been superseded by this Notification |
| Rule 31C -Value of supply of actionable claims in case of casino | New Rule Inserted . (See Analysis-2) Earlier, Rule – 31B and Rule 31C (Valuation Rules for Online Gaming, Online Money Gaming and Casino) were introduced via Notification No. 45/2023 – Central Tax, dated 06.09.2023. Now, those rules have been superseded by this Notification |
| Rule 46 -Tax Invoice | All registered persons who supply goods or services to unregistered persons must include the following information on the tax invoice: 1.Name and address of the recipient 2.Address of delivery 3. Name of the State and its code, if the recipient is unregistered and the value of the taxable supply is less than ₹50,000 and the recipient requests that these details be recorded on the tax invoice However, there are two exceptions to this rule: In cases involving supply of online money gaming or in cases where any taxable service is supplied by or through an electronic commerce operator or by a supplier of online information and database access or retrieval services to a recipient who is unregistered, irrespective of the value of such supply, a tax invoice issued by the registered person shall contain the name of the state of the recipient and the same shall be deemed to be the address on record of the recipient. |
| Rule – 64 Form and manner of submission of return by persons providing online information and data base access or retrieval services and by persons supplying online money gaming from a place outside India to a person in India. | Heading changed |
| Every registered person who provides online money gaming services from a place outside India to a person in India, or who provides online information and database access or retrieval services from a place outside India to anon-taxable online recipient in India or to a registered person in India (other than a non-taxable online recipient), must file a return in Form GSTR-5A on or before the twentieth day of the month succeeding the calendar month or part thereof. | |
| Rule -87 Electronic Cash Ledger | To pay GST electronically, you must generate a challan on the GST common portal and then pay the amount through one of the authorized modes. There are some exceptions to the OTC payment limit, such as for government departments and persons authorized to recover outstanding dues. Additionally, persons supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient, or persons supplying online money gaming from a place outside India to a person in India, can also make GST payments through international money transfer. |
Analysis-1
“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.
Our Analysis:
Rule 31B of the Central Goods and Services Tax (CGST) Rules, 2017, states that the value of supply of online gaming, including online money gaming, is the total amount paid or deposited with the supplier by the player, including virtual digital assets. This amount includes any entry fees, buy-ins, or other payments made by the player to participate in the game.
Any amounts refunded to the player by the supplier are not deductible from the value of supply. This means that the GST on the full amount paid or deposited by the player is payable, even if the player loses all of their money.
Example:
A player deposits ₹10,000 with an online gaming portal to play online poker. The player wins ₹5,000 and withdraws the money from the portal. The value of supply for GST purposes is still ₹10,000, even though the player only won ₹5,000.
Analysis-2
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; rocess, 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.”
Our Analysis:
Rule 31C states that the value of supply of actionable claims in a casino is the total amount paid or payable by or on behalf of the player for:
- Purchase of tokens, chips, coins, or tickets, by whatever name called, for use in the casino; or
- Participating in any event, including game, scheme, competition, or any other activity or process, in the casino, in cases where tokens, chips, coins, or tickets are not required.
Any amount returned or refunded by the casino to the player is not deductible from the value of supply. This means that the GST on the full amount paid or payable by the player is payable, even if the player loses all of their money.
Example A player deposits ₹10,000 with a casino to purchase chips. The player then uses the chips to play blackjack and loses all of their money. The value of supply for GST purposes is still ₹10,000, even though the player lost all of their money.
Changes in rate of Goods Effective from 01-10-2023
Entry 227A has been added in Schedule IV of the Notification No.01/2017-Central tax (Rate) to notify the GST Rate of 28% for the following supply with effect from 01-10-2023. Entry 227A are as under:
| Notification No. | Entry 227A | Remarks |
| Notification No.11/2023-Dated 29-09-2023 | Specified actionable claim; Explanation: “specified actionable claim” as defined in section 2(102A) of the CGST Act, 2017 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;” | Serial No.228 & 229 and entries related to it shall be omitted |
Integrated Goods and Services Tax (Amendment) Act, 2023 (31 of 2023) applicable from 01-10-2023
Integrated Goods and Services Tax (Amendment) Act, 2023 (31 of 2023) has contained following amendment which having applicability from 01-10-2023 by notification No.02/2023.
| Changes in Section of IGST Act,2017 | Summary |
| Section-2 Definition | OIDAR Service definition amended by following words added in clause (VII) “online gaming, excluding the online money gaming as defined in clause (80B) of section 2 of the Central Goods and Services Tax Act, 2017 (12 of 2017). |
| Section-5 Levy & Collection | Before amendment on every imported goods IGST is calculated and collected according to the Customs Tariff Act of 1975. After amendment for every imported goods, except those specified by the government and the Council, IGST is calculated and collected according to the Customs Tariff Act of 1975. |
| Section-10 Place of Supply ( other than Export & Import) | Insertation in sub-section (1), after clause (c) : if the receiver’s address is on the invoice, then POS will be location of recipient. If address not available, then it’s the supplier’s location that’s considered for determining the place of supply. |
| Section 14A -Special provision for specified actionable claims supplied by a person located outside taxable territory | Newly inserted section. Simplification of the rule are as under: 1. If a supplier of online money games isn’t in the country where they sell the games (taxable territory), they need to pay a tax called integrated tax for those sales. 2. To follow this rule, they need to get registered under a Simplified Registration Scheme. If they don’t have a physical presence or someone representing them in the country where they sell, they need to appoint someone there to handle tax payments. 3. If they or their appointed person don’t follow these rules, their online gaming services could be blocked from public access according to the Information Technology Act. |
IGST will be levied on online gaming provided from Nontaxable territory
From 01-10-2023,Online Money Gaming provided by the person from non-taxable territory is treated as Import of Goods but tax on the same will not be levied as per Customs Tariff Act, 1975. Tax will be levied as per IGST Act, 2017.
Our Analysis
The notification states that the government will now levy and collect integrated tax (IGST) on the import of online money gaming services. This means that foreign companies that provide online money gaming services to customers in India will need to pay IGST on their revenue from these services.
The notification comes into effect on October 1, 2023.
Online Money Gaming GST Registration
The Principal Commissioner of Central Tax, Bengaluru West has been empowered to grant GST Registration for the “Online Money Gaming” provided by the person located in Non – Taxable Territory to the person in india w.e.f. 01.10.2023.
Our Analysis:
The notification states that the Principal Commissioner of Central Tax, Bengaluru West and all the officers subordinate to him are now empowered to grant registration in case of supply of online money gaming provided or agreed to be provided by a person located in a non-taxable territory and received by a person in India.
In simpler terms:
Foreign companies that provide online money gaming services to customers in India can now register for GST with the Principal Commissioner of Central Tax, Bengaluru West and all the officers subordinate to him.
Explanation.-For the purposes of this notification, “online money gaming” shall have the same meaning as assigned to it in clause (80B ) of section 2 of the Central Goods and Services Tax Act, 2017 (12 of 2017).
Clause 80B of section 2 of CGST Act, 2017 (12 of 2017) are as follows:
(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.
No GST on Ocean Freight
CBIC has made an amendment that no GST is required to be paid on Ocean Freight.
Earlier, 5% IGST was leviable in case of Ocean Freight. Then Gujarat High Court has held the levy of 5% IGST as ultra vires in case of Mohit Minerals Pvt. Ltd. v/s UoI & Ors. [C/SCA/726/2018 dated January 23, 2020] as it results in double taxation as GST is already paid on freight component at the time of import of Goods. This judgment was also upheld by the Supreme Court [2022(61) G.STL 25(SC)].
Government has omitted words “including services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India” in Notification No.08/2017-Integared tax (Rate) dated 28-06-2017.
Notification No.08/2017 is related to rate for the supply of service under IGST Act,2017.by omitting this words service provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India are no more taxable.
Government has substituted proviso in entry no.10 of Notification No.09/2017-Integrated Tax (Rate) dated 28-06-2017.
when services received by:
(a) Government bodies, local authorities, and individuals for purposes other than business,
(b) Charitable entities registered under a specific section of the Income-tax Act, or
(c) People in non-taxable territories.
from a service provider in a non-taxable territory are exempt from tax.
However, this exemption doesn’t apply to online information and database access services received by those mentioned in item (a) or item (b). Government has omitted the following Entry in Notification No.10/2017-Integrated Tax(Rate) dated 28-06-2017 which is effective from 01-10-2023.
| Sr No. | Category of Supply of Services | Supplier of service | Recipient of Service |
| 10 | Services supplied by a person located in non- taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India. | A person located in nontaxable territory | Importer, as defined in clause (26) of section 2 of the Customs Act, 1962(52 of 1962), located in the taxable territory. |
| No RCM for above mentioned entry | |||
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