Notification No.: 51/2023 – Central Tax
Date of Notification: 29th September 2023
Relevant Sections and Rules:
- Central GST Act, 2017:
- Section 164 – Power of Government to make rules
- CGST Rules, 2017 (Amended):
- Rule 8(1) – Registration requirements (amended to include online money gaming suppliers from outside India)
- Rule 14 – Application for registration (expanded to cover online money gaming suppliers)
- Rule 31B – Value of supply in case of online gaming including money gaming (inserted)
- Rule 31C – Value of supply of actionable claims in case of casinos (inserted)
- Rule 46(f) – Invoicing requirements updated for online money gaming cases
- Rule 64 – Filing of returns in FORM GSTR-5A (substituted to include online money gaming suppliers from outside India)
- Rule 87(3) – Amendment to include Section 14A (online money gaming) for payment compliance
- Forms Amended/Introduced:
- GST REG-10 – Application for registration by suppliers of online money gaming from outside India
- FORM GSTR-5A – Revised format for return by suppliers of OIDAR services and online money gaming
Summary of Notification:
- This notification supersedes the earlier Third Amendment Rules, 2023 (Notification 45/2023) and comprehensively amends the CGST Rules, 2017 with effect from 1st October 2023.
- Registration & Compliance:
- Suppliers of online money gaming from outside India to players in India must obtain GST registration and file returns in India.
- Amendments in Rule 8 and Rule 14 incorporate this requirement formally.
- Valuation Rules Introduced:
- Rule 31B – Value of supply of online gaming (including online money gaming) shall be the total amount deposited/paid by players, including virtual digital assets. Refunds or unused deposits are not deductible.
- Rule 31C – Value of supply in casinos shall be the total purchase/payment for tokens, chips, tickets, or direct participation in casino games/events. Refunds on returned chips/tickets are not deductible.
- Winnings used for further play without withdrawal are not considered fresh deposits.
- Invoicing: Rule 46 amended to mandate invoice disclosures in cases involving online money gaming supplies.
- Returns:
- Rule 64 substituted – Return filing in GSTR-5A is now applicable for both OIDAR suppliers and online money gaming suppliers from outside India.
- Revised FORM GSTR-5A introduced to capture details of online money gaming supplies made to Indian players.
- Payment & Compliance:
- Rule 87 amended to align e-payment compliance with Section 14A of IGST Act (online money gaming from abroad).
- These rules operationalize the new GST regime for online gaming, money gaming, and casinos, effective 1st October 2023, aligning with changes under the CGST (Amendment) Act, 2023 and Notification 49/2023.
