TaxTMI 
TaxTMI 
Minutes of the 51st Meeting of GST Council held on 02nd August, 2023
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.... gaming and horse racing 17-23 3. Addendum to Agenda item 2: Revised Valuation Rules- Rule 31B and Rule 31C - 1.3 The Secretary to the GST Council, welcomed all the Hon'ble Members of the Council and participating officers to the 51st meeting of the GST Council. 1.4 The Secretary on behalf of the Council, welcomed Dr. Pramod Sawant, Hon'ble Chief Minister, Goa to his very first Council Meeting. The Secretary also welcomed Sh. Ajit Pawar, Hon'ble Deputy Chief Minister, Maharashtra and Sh. B. D. Kalla, Hon'ble Member from Rajasthan who were attending GST Council meeting after some time gap. 1.5 The Secretary appreciated the immense contribution made by Sh. Vivek Johri, ex-Chairman, CBIC to the Council who had superannuated on 31/07/2023. 1.6 The Secretary stated that the GST Council in its 50th meeting had made certain recommendations on taxation of casinos, race courses and online gaming and recommended levy of 28% GST on the face value. Many Hon'ble Members had requested to make corresponding amendments in various GST Acts and Rules at the earliest. The amendments have been drafted by the Law Committee and they form the main agenda for th....
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....ications and circulars issued based on the recommendations by the GST Council and take note of the decisions of the GST Implementation Committee (GIC). Decision: The Council ratified the notifications and circulars issued based on the recommendations by the GST Council and took note of the decisions of GST Implementation Committee. * 3. Agenda Item 2 :- Proposal for making amendments to the CGST Act, 2017, IGST Act, 2017, CGST Rules, 2017 and issuance/amendment of the Notifications pertaining to the Casino, Online gaming and Horse Racing 3.1 The Pr. Commissioner, GST Policy took up the next agenda regarding amendments in CGST Act, IGST Act, CGST Rules, and issuance of notifications pertaining to taxability of online gaming, casinos, etc. He made the detailed presentation (attached as Annexure-3) on the recommendations made by the Law Committee and the discussion made in the Officers' meeting on the said agenda. He stated that the Revenue Secretary had already mentioned that the actionable claims supplied in casinos, online gaming, and horse racing were agreed to be made taxable at 28% on full face value irrespective of whether activities are games of chance or game of ....
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....ss-border supplies of online money gaming by a supplier located outside India to a person in India. The proviso to Section 5 of IGST Act is proposed to be amended so that the integrated tax on goods, other than goods as may be notified by the Government on the recommendations of the Council, imported into India shall be levied and collected in accordance with the provisions of Section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under Section 12 of the Customs Act, 1962. 3.7 A new Section 14A is proposed to be inserted in IGST Act to provide for special provision for taxability of supply of online money gaming by a person located outside the taxable territory to a person in India, inter-alia to specify liability on the said supplier for payment of integrated tax on such supply. Section 14A also provides the provision of a single registration of the said supplier through the Simplified Registration Scheme and the power to the Government for blocking of access by the public in case of failure to comply with the provisions. He, thereafter, stated that besides these amendments, t....
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....on in Officers' meeting. 3.11 Pr. Commissioner, GST Policy stated that one of the concerns was that the money could directly be used in the slot machines instead of tokens or coins to address which it was proposed to add a sub-clause (ii) in Rule 31C in the definition to provide that value of supply shall be the total amount paid or payable by or on behalf of the player for participating in any event, including game, 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. 3.12 Further, he also stated that, it is proposed to add an Explanation to Rule 31B and Rule 31C to state that any amount received by the player by winning any event, including game, scheme, competition or any other activity or process, which is further used for playing by the said player in an event without withdrawing, shall not be considered as the amount paid or deposited with the supplier by or on behalf of the said player. This recommendation was agreed upon in the officer's meeting. 3.13 He further mentioned that in the Officers' meeti....
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....p;had suggested that in the case of online gaming, recording of PIN code of the recipient by the supplier should be made mandatory to record the place of supply. This issue was discussed and it was recommended that whether pin code or State code would be sufficient for the determination of Place of Supply is a broader issue related to online supplies of various goods and services. This aspect should be decided in the case of all the online supplies of goods and services and Law Committee should examine it and then bring it before the Council. He further stated that the suggestion of Haryana to include "virtual digital assets" in the definition of "consideration" in section 2 (31) of the CGST Act 2017 was also discussed and it was noted that this is also a larger issue and requires separate examination by the Law Committee. 3.17 The Pr. Commissioner, GST Policy then took up the suggestion put forth by Gujarat wherein it was suggested that amendment may be made in section 17(5) of CGST Act for blocking of the ITC on account of tax paid by business entities for their employees in relation to online gaming or casinos. He st....
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....g on Gross Gaming Revenue. 3.22 The representative of Goa stated that casino industry is limited to only two States i.e Sikkim and Goa and this decision would adversely affect the casino industry leading to its closure. Non-refund of tax on return of chips in casino sector will promote unethical practices in the casino industry and requested for re-consideration of this issue in GST Council meeting. 3.23 The Hon'ble Member from Kerala informed that he is in general agreement with the decision taken in 50th GST Council Meeting. However, he raised the issue of Place of Supply in case of online gaming and suggested that in case of online gaming, recording of PIN code of the recipient should be made mandatory. He therefore requested that specific provision for recording of PIN code be notified so that consuming State could get their due revenue. 3.24 The Secretary suggested that the issue of requirement of PIN code of the recipient and Place of Supply is a larger issue and not only related to online gaming but also to other online supplies as well. Therefore, it may be separately examined in detail by the Law Committe....
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.... to define the concept of permissible online game and permissible online real money game. Since these guidelines cover the concept of permitted online gaming, therefore, clubbing online gaming with betting and gambling under GST Law would be contrary to the spirit of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 and even imposition of same 28% tax rate on online gaming does not separate online gaming from betting and gambling. Therefore, these should be kept in different categories. He requested that the recommendation of GST Council to levy tax on the full face value paid for casino, race course and online gaming should be examined in detail before taking final decision regarding the value of supply. 3.28 The Hon'ble Member from Bihar supported the proposal to levy higher tax rate on gambling as it would not only increase the revenue of the Centre and States but it also has social and moral connotations. The Hon'ble Member further requested the Members of the Council to bring the proposed amendment bill to implement recommendation of GST Council on casino, race c....
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....ers introduce the options for players to make investments and buy coins or points, then these games should also be treated as gambling and the same may be taken for consideration. The Hon'ble Member from Chhattisgarh also suggested to have some provision for continuing Compensation Cess for two affected States if they suffer fall in their revenue. He reiterated to stick to the decision of the GST Council and implement the rules accordingly. 3.33 The Revenue Secretary thanked the Hon'ble Member from Chhattisgarh and clarified that his suggestions on online games with stakes and games without stakes will be considered. 3.34 The Hon'ble Member from Meghalaya stated that he had two points to make. First point was regarding Rule 31B which states that the supply shall be total amount paid to or deposited with the supplier by way of money or money's worth. He informed that there are three scenarios in this online gaming taxation. The first scenario which prevailed before the bringing the proposal of taxation of casino, race course and online gaming in GST Council which means that 18% tax was being charged on....
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....asion of tax happens. He also informed that tax can be levied up to 40% under GST Act. He further added that Council may look into how other countries are taxing these activities and suggested that we may increase the rate of tax but keep the valuation on GGR which will also take care of demand of Goa and Sikkim. 3.37 The Hon'ble Member from Puducherry stated that the UT of Puducherry proposed to ban online gaming and they are awaiting suggestions from Ministry of Home Affairs and MeitY for bringing legislation to ban online games. The Hon'ble Member also expressed his agreement with taxing of betting, gambling, casinos, online games at 28% on face value. Apart from that, in order to give a wider definition, the word "wagering" which means 'risk (a sum of money or valued items) against someone else on the basis of the outcome of an unpredictable event may be included in section 2(102A) of CGST Act, 2017. 3.38 The Hon'ble Member from Andhra Pradesh stated that the State of Andhra Pradesh reiterates its stand taken in the, last GST council meeting. He stated that the issue of taxation on casino, race course and online....
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....h stated that a decision was taken in the 50th GST Council meeting on the issue of casinos, race course and online gaming after long discussions and that he supported the proposed amendments. The Hon'ble Member emphasised that public perception should be taken into account during framing of laws & rules in matter of taxation. He further stated that States should strive to utilize its resources and promote tourism to augment revenue rather than basing the economy solely on Casino. The Hon'ble Member supported the proposal of Kerala on the subject of Place of Supply and expressed his agreement to the matter to the Law Committee. 3.42 The Hon'ble Member from West Bengal stated that the Council had taken the decision in its 50th meeting on the issue of Casinos, Race Course and Online Gaming after discussions and it should not be reopened. She expressed agreement with the Hon'ble Member from Uttar Pradesh that the issue had come to an end as the entire issues was discussed in last meeting of the Council held on 11th July, 2023 and the present matter of discussion was regarding changes in proposed Rules by the....
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.... the Secretary proposed the recommendation for amendments and their impact on the Online Gaming Industry or Casinos could be re-evaluated by the Council after a period of say 6-8 months. This approach would allow for a timely implementation of the decision while also providing an opportunity to assess any adverse effects on the concerned Sectors in due course, if any. 3.48 On the request of the Secretary, the Member (Compliance), CBIC apprised the Council about the offshore Online Gaming Companies. He stated that the matter regarding these Companies was investigated by the Director General of GST Intelligence and the Companies which were not compliant with the GST laws, were referred to the MEITY for blocking. He apprised the Council that an order for blocking these Companies has been passed by the METTY which was now being implemented by the DoT. 3.49 The Hon' ble Member from Delhi stated that she did not doubt the intent of the Council but was concerned about the IT abilities of these illegal Companies. She pointed out that the time taken by the Government procedure and formalities to pass an order for blocking....
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....arties. The Chairperson made it clear that the Council was not devoid or unaware of the inputs from the gaming industry; rather, there had been multiple meetings with the industry over the years to address their concerns. The Chairperson reiterated that the issues at hand had been subject to extensive deliberations and re-deliberations over the past three years. The Council was committed to making an informed and thoughtful decision that considered all perspectives and potential consequences. 3.53 The Hon'ble Member from Meghalaya concurred with the Chairperson acknowledging that every point has been thoroughly deliberated over the course of several years. He reiterated that the decision in question had been reached by consensus during the 50th Meeting of the GST Council. He clarified that the purpose of the current discussion was not to alter the decision taken in the last meeting but rather to progress in determining the full-face value of the supply to be taxed. 3.54 The representative of Goa expressed that he has consistently supported the 28% tax rate as decided by the Council for the Casinos. His concern lies pr....
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....t not be socially acceptable considering the moral values and revenue implications. He emphasized that the Council had resolved to implement the decision for a period of six months and would reassess if it would be necessary. He advocated closing the matter. In consideration of the affected States, Goa and Sikkim, he proposed referring the matter to the Group of Ministers (GoM) for examination and resolution or providing compensatory measures to address the specific challenges faced by these States in case of Casinos. 3.56 The Hon'ble Member from West Bengal asserted her stance on the matter, firmly stating that the issue has been thoroughly discussed in the current meeting and the 50th Council meeting. She mentioned that the Law Committee had also presented its report and it was imperative to implement it at present. However, she stated that if any adverse consequences arose due to the implementation, the matter could be brought back to the table for further review. 3.57 The CST, Maharashtra sought permission to speak on behalf of the Hon'ble Member from Maharashtra as he was preoccupied in unscheduled and u....
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....gs are subject to income tax and a clarification has already been issued regarding it and the industry is satisfied with it. He mentioned that the income tax is charged on the net winnings of an individual for the year. The Secretary clarified that TDS is applicable only when there are winnings and if there are no winnings, there would not be any TDS deduction. 3.65 The Chairperson clarified that TDS is a component of direct taxation. The Chairperson clarified that matter of direct taxation does not fall under the purview of the GST Council. 3.66 The Member from Delhi acknowledged the clarification but suggested that the Council should consider revising the tax rate to provide some relief, as it would add to the overall taxation burden on the gaming industry. 3.67 The Secretary clarified to the Council that the current agenda of meeting solely pertained to the implementation of decisions taken in the 50th Council meeting. The proposed amendments in CGST Act and IGST Act were only meant to provide enabling provisions so that online money gaming like gambling continues to be subject to taxation. He emphasized that t....
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....ne gaming imposed by the State. The Chairperson stated that the Revenue Secretary had already clarified that the decision would not result in any anomaly. The advice from the Additional Solicitor General (ASG) was sought and it indicated that there would be no conflict. 3.71 To address apprehension of Tamil Nadu about the decision being perceived as legalizing online gaming in State of Tamil Nadu where it is banned, the Secretary proposed providing for a provision in the proposed amendments to clarify that the provisions of the amendments do not prejudice any other law and do not intend to legalize any activity that is banned under other laws. The draft of this proposed clarificatory provision could be shared with the State. 3.72 The Member from Tamil Nadu thanked the Council for considering their request and agreed to the proposal for the draft provision to be sent to them. 3.73 The Member from Kerala also raised a similar issue regarding the ban on such activities in their State and expressed satisfaction with the proposal given by the Secretary. 3.74 The Chairperson reiterated that the Council had consulted the ASG to....
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....ery view presented by the Members and either clarified or agreed or responded to them. She highlighted that the Council had previously postponed decisions when necessary in the interest of States and this decision had taken three years to reach finality. She reassured that a review could be conducted after six months of implementation, if needed. Responding to the suggestion from the Hon'ble Member from Goa to review it in three months, she clarified that such a timeline would be too short to get sufficient experience for drawing any definitive conclusion. She then assured that after the six months of its implementation, the Council will table it and review the statistics and the wisdom of the Council will prevail. She sought the cooperation of the Members of GST Council to implement the proposed amendment from 01.10.2023. Decision: The Council agreed to amendments in the CGST Act 2017, IGST Act 2017 and CGST Rules 2017 (along with modifications in proposed rules presented before the Council and detailed in the presentation) and issuance of notification under section 15(5) of CGST Act 2017 and amendment in Notifica....
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....f Minister, Minister for Finance Minister for Medical, Health & Family Welfare Department and Publicity & Information Department Chief Minister 20 Mizoram Shri. Lalchamliana 21 Nagaland 22 Odisha Shri K.G Kenye Shri Bikram Keshari Arukha Taxation Minister Minister for Power and Parliament Affairs Minister for Finance 23 Punjab Shri Harpal Singh Cheema 24 24 Puducherry Shri K. Lakshminarayanan 25 Rajasthan Shri B.D.Kalla 26 Sikkim Shri B. S. Panth 27 Tamil Nadu 28 Telangana 29 Uttar Pradesh CHAIRMAN'S INITIALS Shri Thangam Thennarasu Shri T. Harish Rao Shri Suresh Kumar Khanna Finance Minister Minister for Public Works Minister, Department of Education (Primary and Secondary Education), Department of Sanskrit Education, Department of Art, Literature, Culture and Archeology, Independent charge of the Department of Primary Education under Panchayati Raj Minister of Tourism & Civil Aviation/Commerce & Industries/Information & Public Relations/Printing and Stationery Department Minister for Finance and Human ....
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....Deputy Commissioner 25 GST POLICY WING Ms. Neha Yadav Deputy Commissioner 26 GST POLICY WING Ms. Soumya Deputy Commissioner 27 TRU Ms. Anna Sosa Thomas 28 CBIC Shri Rushikesh Kodgi 29 PIB Dr. Pragya Paliwal Gaur 30 PIB Shri Kush Mohan Nahar Page 27 of 49 Technical Officer Dy. Controller of Accounts Additional Director General Media & Communication Officer CHAIRMAN'S INITIALS MINUTE BOOK 31 GST Council Secretariat Shri Kshitendra Verma Director 32 GST Council Secretariat Shri S.S.Shardool Director 33 GST Council Secretariat Shri Joginder Singh Mor Under Secretary 34 GST Council Secretariat Ms. Reshma R. Kurup Under Secretary 35 555 GST Council Secretariat Ms. Priya Sethi 36 GST Council Secretariat Shri Dharambir Superintendent Superintendent 37 GST Council Secretariat Shri Irfan Zakir Superintendent 38 GST Council Secretariat Shri Naveen Kumar Superintendent 39 GST Council Secretariat Shri Sachin Goel Superintendent 40 40 GST Council Secretariat Ms. Ambika Rani Superintende....
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.... Delhi Shri A Anbarasu Principal Commissioner (State Tax) 71 Delhi Shri Awanish Kumar Special Commissioner (State Tax) 72 Delhi Shri Lekh Raj Additional Commissioner (Sate Tax) 773 Delhi Shri Atish Kumar Joint Commissioner (Sate Tax) 74 Goa Shri S.S.Gill Commissioner of State Tax 75 75 Goa Shri Vishant S.N.Gaunekar Additional Commissioner of State Tax 76 76 Goa Shri.Chandresh C.Kunkalkar Additional Commissioner of State Tax 77 Gujarat Shri J.P. Gupta Additional Chief Secretary, Finance Department 78 Gujarat Ms. Arti Kanwar Secretary (Economic Affairs), Finance Department 79 Gujarat Shri Samir Vakil 80 Gujarat Shri Dilip Thaker Chief Commissioner of State Tax (I/c) Joint Secretary (Tax) CHAIRMAN'S 81 Gujarat Shri Riddhesh Raval Joint Commissioner of State Tax INITIALS Page 30 of 49 Shipra Shipra MINUTE BOOK 83 82 Haryana 83 Haryana 84 Haryana Shri Devinder Singh Kalyan Shri Ashok Kumar Meena Shri Siddharth Jain 85 Himachal Pradesh Shri Bharat Khera ....
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....ioner of Taxes 112 Meghalaya Shri. P.S. Lyngdoh Assistant Commissioner of Taxes 113 Mizoram Shri Vanlal Chhuanga Principal Secretary, Taxation Department CHAIRMAN'S 114 Mizoram Shri H. Lianzela INITIALS Page 32 of 49 Secretary, Taxation Department Shipra Shipra MINUTE BOOK 115 Mizoram Shri R. Zosiamliana Commissioner of State Tax 116 Mizoram Shri. C. Vanlalchhuana Commissioner of State Tax 117 Mizoram Shri Hrangthanmawia Assistant Commissioner of State Taxes 118 Mizoram Shri. K.H. Thanchhunga State Tax Officer 119 Mizoram Smt. Jennifer Lallawmpuii Pachuau State Tax Officer 120 Nagaland Shri Wochamo Odyuo Additional Commissioner of State Taxes 121 Odisha Shri Vishal Kumar Dev Principal Secretary, Finance 122 Odisha Shri Sanjay Kumar Singh 123 Punjab Shri Vikas Partap 124 Punjab Shri Kamal Kishor Yadav Commissioner of Commercial Taxes & GST Financial Commissioner (Taxation) Commissioner of State Tax 125 Punjab Shri Ravneet Khurana 126 Puducherry Shri L. Mohamed Mansoor....
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....ik Revenue Page 35 of 49 CHAIRMAN'S INITIALS Document 2 CHAIRMAN'S INITIALS MINUTE BOOK Presentation on issues pertaining to GST law and procedures 51st Meeting of GST Council 2nd August 2023 NEW DELHI Annexure-3 NATION TAX MARKET Ratification of Notifications and Circulars Page 36 of 49 Shipra MINUTE BOOK Shipra Agenda 1: Ratification of Notifications, Circulars etc. (1/2) [Vol 1- Pg. 7-16] Act Ruler CGST Act CGST Rules UTGST Act IGST Act Notifications Circulars Nos Nine (09) Central Tax Notifications issued (No. 18/2023 to 26/2023) & Five (05) Central Tax (rate) Notifications issued (No. 06/2023 to 10/2023). Subsequent to circulation of Council agenda, Eight (8) more Central Tax Notifications issued (No. 27/2023 to 34/2023 all dated 31.03.2023) Five (05) Union Territory Tax (rate) Notifications issued (No. 06/2023 to 10/2023) Five (05) Integrated Tax (rate) Notifications issued (No. 06/2023 to 10/2023). Subsequent to circulation of Council agenda, One (1) more Integrated Tax Notification issued (No. 01/2023....
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....any Clarification on refund-related issues vii. Clarification on issue pertaining to e-invoicing viii. Clarification regarding taxability of services provided by an office of an organisation in one State to the office of that organisation in another State, both being distinct persons Page 37 of 49 CHAIRMAN'S INITIALS MINUTE BOOK Recommendations of the Law Committee I CHAIRMAN'S INITIALS Agenda 2: Amendments in CGST Act 2017, IGST Act 2017 & CGST Rules and amendment/issuance of notifications for online gaming/casinos, etc. (1/8) [Vol 1- Pg 17-23] Issue: The GST Council, in the 50th meeting held on 11.07.2023, deliberated on the Agenda Item No. 5 i.e. Second Report of the Group of Ministers (GoM) on Casinos, Race Courses and Online Gaming. The Council recommended that the actionable claims supplied in Casinos, Horse racing and Online gaming to be taxed at the rate of 28% on full face value irrespective of whether the activities are a game of skill or chance and accordingly, the law may be amended to provide clarity on the matter. Accordingly, a proposal for amendments in the CGST/IGST Acts was deliber....
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....line money gaming Page 39 of 49 CHAIRMAN'S INITIALS MINUTE BOOK Agenda 2: Amendments in CGST Act 2017, IGST Act 2017 & CGST Rules and amendment/issuance of notifications for online gaming/casinos, etc. (4/8) [Vol 1- Pg 17-23] Major Amendments in CGST Act/ IGST Act 2. Deeming provision in the definition of supplier for treating a person as supplier in respect of a supply of specified actionable claims: S.No. Section of CGST Act 5. Section 2(105) Description Insertion of a proviso in clause (105) of section 2 of CGST Act to provide for a deeming provision in the definition of "supplier" to treat a person as supplier in respect of a supply of specified actionable claims. Agenda 2: Amendments in CGST Act 2017, IGST Act 2017 & CGST Rules and amendment/issuance of notifications for online gaming/casinos, etc. (5/8) [Vol 1- Pg 17-23] Major Amendments in CGST Act/ IGST Act 3. Providing for taxability of cross-border supplies of online money gaming by a supplier located outside India to a person in India S.No. 6. Section of IGST Act Section 14A Description A CHAIRMAN'S INITIALS ....
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....l amount paid or payable by or on behalf of the player- (i) for purchase of the tokens, chips, coins or tickets, by whatever name called, for use in casino; or (ii) for 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. 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. Page 41 of 49 CHAIRMAN'S INITIALS CHAIRMAN'S INITIALS MINUTE BOOK Agenda 2: Amendments in CGST Act 2017, IGST Act 2017 & CGST Rules and amendment/issuance of notifications for online gaming/casinos, etc. (8/8) [Vol 1- Pg 17-23] Amendment in Notification No. 66/2017-Central Tax dated 15.11.2017: to provide for time of receipt of advances as time of supply in respect of th....
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....nsertion of proviso after proposed rule 31C: Provided that any amount returned or refunded by the casino to the payer 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. THANK YOU Page 43 of 49 பெ CHAIRMAN'S INITIALS MINUTE BOOK Section 2(80A) CGST Act Rationale for amendment Proposal Suggested formulation The term "online insertion of clause Section 2 gaming" needs to (80A) for defining (80A) "online gaming" means be defined in the "online gaming" in offering of a game on the internet or the CGST Act. an electronic network and includes online money gaming. CGST Act. Section 2(80B) CGST Act Rationale for am endi ent Proposal The term "online insertion of money gaming (80B) for needs to defined in be "online the gaming" CGST Act. CGST Act. in Suggested formulation clause Section 2 defining (80B) "online money gaming" means money online gaming in which players pay or the deposit money or money's worth. including virtual digital assets, in the ....
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....pplier liable to pay the tax in relation to the supply of such actionable claims. Page 45 of 49 CHAIRMAN'S INITIALS MINUTE BOOK Section 2(117A) CGST Act Rationale for ain endi ent Proposal Suggested formulation The term "virtual insertion of clause Section 2 digital asset (117A) for defining (117A) "virtual digital asset" shall digital have the same meaning as assigned to the asset in the CGST it in section 2(47A) of Income Tax Act. Act, 1961 (43 of 1961). needs to be "virtual defined in CGST Act. CHAIRMAN'S INITIALS Section 24 CGST Act Rationale for ain endi ent Proposal Section 24 provides for insertion compulsory registration clause in certain cases. It is for proposed that a person making supplying online money registration gaming from a place under Suggested formulation of 24. Compulsory registration in (xia) certain cases.- Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be GST registered under this Act.- outside India to a person compulsory in India may be required for a person....
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....ices or both and for collection of amended to the same in the manner as may be prescribed. the government to notify certain goods However, the proviso to sub-section (1) of for whom the said section 5 provides that the integrated tax on proviso may not be goods imported into India shall be levied and applicable for levy collected in accordance with the provisions and collection of of Customs Tariff Act, 1975 at the point when integrated tax and in the duties of customs are levied on the said whose goods under section 12 of Customs Act, 1962. integrated tax shall be levied and collected the manner case, In case of intangible goods, it may not be in possible to levy and collect integrated tax on specified in section imports in the manner as provided in the said 5 (1) only. proviso, as the goods may not be physically crossing customs frontiers. Accordingly, there may be a need to amend the said proviso so as to enable the government to notify certain goods for whom the said proviso may not be applicable for levy and collection of integrated tax and in whose case, integrated tax shall be levied and collected in the ma....