In light of recent amendments to the CGST/SGST Act, IGST Act, and CGST/SGST Rules, it is now mandatory for any person located outside the taxable territory who provides online money gaming services to individuals within the taxable territory to register for GST and fulfill tax obligations. This implies that every entity situated outside the taxable territory offering online money gaming services to individuals in India must register or amend their existing registration in accordance with the proposed Row (iia) in Form GST REG-10. Additionally, they are required to provide information regarding these supplies in the proposed Tables in Form GSTR-5A.
Development in Progress:
The GSTN is currently working on the functionality to accommodate these new registrations and registration amendments. In the interim period before this functionality is available on the GST portal, a temporary solution is recommended.
1. Registration (Form GST REG-10):
a) Persons engaged in the provision of online money gaming services should identify themselves as such in Form GST REG-10, as per the proposed amendments. New registrations for such services may be necessary, and applications for these registrations can be filed in the existing Form GST REG-10. When applying for registration, the ‘Type of Supply’ should be declared in Row (iia) of Form GST REG-10.
b) As a workaround, individuals offering online money gaming services who are required to register based on recent amendments can use the existing Form GST REG-10 for their registration application. Along with the application, they should upload a PDF copy of the information provided in Row 2(iia) of the amended Form GST REG-10 in the ‘Documents Upload’ section within Part -A of Form GST REG-10, following the provided format.
2. Return (Form GSTR-5A):
a) Suppliers of online money gaming services are obligated to report the details of these services in Table 5D and 5E of Form GSTR-5A.
b) Until Tables 5D and 5E are incorporated into Form GSTR-5A on the GST portal, those involved in supplying online money gaming services are encouraged to report these details in the existing Tables 5 and 5A within Form GSTR-5A.
This procedure is recommended to be followed until the changes are fully integrated into the GST portal, ensuring compliance with the new regulations concerning online money gaming services.