GST

GST Rule 31B & 31C for valuation of supply in online gaming/ money gaming or casino

GST Rule 31B and 31C for valuation of supply in online gaming or money gaming or of actionable claims in casino

GST Rule 31B and 31C for valuation of supply in online gaming or money gaming or of actionable claims in casino. GST Council in its 51st meeting held on 2nd August 2023 recommended amendments to provide clarity on the taxation of supplies in casinos, horse racing and online gaming.

Accordingly, the CBID has notified the Central Goods and Services Tax (Third Amendment) Rules, 2023 vide Notification No. 51/2023 – Central Tax dated 29.09.2023.

Two new Rules have been introduced, namely rule 31B related to Value of supply in case of online gaming including online money gaming and rule 31C for valuation of supply of actionable claims in case of casino.

Rule 31B. Value of supply in case of online gaming including online money gaming

As per Rule 31B, 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.

Rule 31C. Value of supply of actionable claims in case of casino

As per Rule 31C, 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 purchase of the tokens, chips, coins or tickets etc. for use in casino; or 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.

It has been clarified that 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.

Consequential amendments have also been made in Rule 14, Rule 64, Rule 87 and Form GSTR-5A

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