Impact on Online Gaming and Casino Operators: Newly Inserted GST Valuation Rules 31B and 31C
In the Central Goods and Services Tax Rules, 2017, new valuation rules have been added after Rule 31A via notification No. 45/2023 – Central Tax dated 06/09/2023. These rules, Rule 31B and Rule 31C, specifically address the valuation of supply in case of online gaming including online money gaming and actionable claims in case of casino.
Comprehensive list for the all rules are given below for ready reference:
|
RULE |
PARTICULARS |
|---|---|
|
Rule 27 |
Value of supply of goods or services where the consideration is not wholly in money |
|
Rule 28 |
Value of supply of goods or services or both between distinct or related persons, other than through an agent |
|
Rule 29 |
Value of supply of goods made or received through an agent |
|
Rule 30 |
Value of supply of goods or services or both based on cost |
|
Rule 31 |
Residual method for determination of value of supply of goods or services or both |
|
Rule 31A |
Value of supply in case of lottery, betting, gambling, and horse racing |
|
Rule 31B |
Value of supply in case of online gaming including online money gaming |
|
Rule 31C |
Value of supply of actionable claims in case of casino |
|
Rule 32 |
Determination of value in respect of certain supplies |
|
Rule 32A |
Value of supply in cases where Kerala Flood Cess is applicable |
|
Rule 33 |
Value of supply of services in case of pure agent |
|
Rule 34 |
Rate of exchange of currency, other than Indian rupees, for determination of value |
|
Rule 35 |
Value of supply inclusive of integrated tax, central tax, State tax, Union territory tax |
Valuation Mechanism with respect to Online Gaming and Casino
31B. Value of supply in case of online gaming including online money gaming
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.
31C. Value of supply of actionable claims in case of casino
Total amount paid or payable by or on behalf of the player for –
(1) Purchase of the tokens, chips, coins or tickets, by whatever name called, for use in casino; or
(2) 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.
Other Points:
• Treatment of Any amount returned or refunded by the supplier to the player: Amount refunded or returned 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.
• Winning amount used in playing in further event without withdrawal: 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.
For more details, follow below link:
https://taxinformation.cbic.gov.in/view-pdf/1009850/ENG/Notifications
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