Notification No. 45/2023-Central Tax, dated 06-09-2023
Following the 51st GST Council meeting, the CGST (Third Amendment) Rules 2023 introduce Rule 31B and Rule 31C under the CGST Rules for the valuation of supply by way of online gaming and actionable claims in casino respectively.
Rule 31B provides that the value of online gaming, including online money gaming, would be the total amount paid to the supplier by the player. Rule 31C provides that the value of actionable claims in casinos would be based on the total amount paid by the player for purchase of the tokens, chips, coins, or tickets, by whatever name called, 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.
Notably, for both the above rules, amount refunded by supplier/casino would not be deductible from the value of supply of. Further, if a player uses winnings for further play without withdrawal, it won’t be considered as an amount paid to the supplier and hence not taxable.
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