Provisions under Rule 31B of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Value of supply in case of online gaming including money gaming”, are as under:
CGST Rule 31B: Value of supply in case of online gaming including online money gaming (Chapter-IV: Determination of Value of Supply) [rule 31B re-inserted from 01/10/2023: refer Note 2]
Notwithstanding anything contained in this chapter, 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.
Explanation.- For the purpose of rule 31B and rule 31C, 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.
Amendments History:
1. Rule 31B inserted vide Notification 45/2023, pending notification on commencement date (superseded by Notification 51/2023 effective 01/10/2023).
“31B. Value of supply in case of online gaming including online money gaming.–
Notwithstanding anything contained in this chapter, 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.”
2. Rule 31B re-inserted from 01/10/2023 vide Notification 51/2023.
Related Posts:
New CGST Rules 31B and 31C: Value of Supply (Online Gaming/ Actionable Claims)