Effective GST Changes With Effect From 1 Oct 2023

The Government of India on 1 July 2017 introduced the Goods and Services Tax Act 2017 to replace the prevailing complex and fragmented tax structure with a unified system that would simplify compliance, reduce tax cascading, and promote economic integration. And in order to simplify the ever changing tax rates according to the Annual Budget it has empowered the government under Section 162 on the recommendation of GST Council to make rules regarding the provisions of the Act for any matter including the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this Act come into force.
In this Article we shall read about the recent Effective GST Changes that shall come into force from 1 October 2023 and in accordance with the Budget 2023-2024.

Affected Provision : Rule 8 sub rule (1) of CGST Act 2017

Who shall be affected?

• Every person liable for Registration under Section 25(1)
• Every person seeking Registration under Section 25(3)

What is required to be done?

They shall, before applying for registration, declare his Permanent Account Number, State or Union territory in Part A of FORM GST REG-01 on the common portal, either directly or through a Facilitation Centre notified by the Commissioner.

Who shall be excluded?

• a non-resident taxable person;
• a person required to deduct tax at source under section 51;
• a person required to collect tax at source under section 52;
• a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14
• a person supplying online money gaming from a place outside India to a person in India referred to in section 14A under the Integrated Goods and Services Tax Act, 2017.

The Government After rule 31A has inserted, the following rules, namely:-

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

What shall be included?

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

What shall not be deductible?

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.– 

What shall be included?

• Total amount paid or payable by or on behalf of 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

What shall not be deductible?

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.

Important Explanation regarding Rule 31 B and 31 C :

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.”

• The next provision that has been substituted is Rule 64 which talks about 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 as that Every registered person either providing online money gaming from a place outside India to a person in India, or providing online information and data base access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) or to a registered person other than a non-taxable online recipient, shall file return in FORM GSTR-5A on or before the twentieth day of the month succeeding the calendar month or part thereof.”
• The Government on the recommendation of Council has also inserted following supplies under sub section (5) of Section 15 namely:
  (i)supply of online money gaming;
  (ii) supply of online gaming, other than online money gaming; and
  (iii) supply of actionable claims in casinos.

The below table shows the words, expression and brackets inserted in each of the following rules.

CONCLUSION:-

Every Registered Professional and business who falls within the ambit of the above provisions are required to adhere with the recent amendments in the GST Act in order to not attract any penalties for non-compliance.

For more latest GST updates 2023, a team of expert advisors from Legal Window is here to assist you at every step. Feel free to reach us at admin@legalwindow.in.