The Integrated Goods and Services Tax (Amendment) Bill, 2023 was introduced in Lok Sabha on August 11, 2023.  It amends the Integrated Goods and Services Tax (IGST) Act, 2017.  The 2017 Act provides for the levy and collection of IGST on the inter-state supply of goods and services.

IGST on online money gaming: A supplier of online money gaming, not located in India, will be liable to pay IGST on the supply of online money gaming to a person in India.   Online money gaming refers to online games where players pay or deposit money (including virtual digital assets) with the expectation of winning money or money’s worth.  This applies to any game, scheme, competition, or other activity irrespective of its outcome being based on skill, chance, or both.  It includes online money games which may be allowed or banned under any law.  Online games refer to games offered on the internet or an electronic network.

Registration mandatory for suppliers of online money gaming: A supplier of online money gaming must obtain registration under the Simplified Registration Scheme notified under the 2017 Act.  If a foreign supplier of online money gaming has a representative in India, such a representative must get registered and pay IGST on behalf of the supplier.  If a foreign supplier does not have a physical presence in India or does not have a representative, he must appoint a representative to pay IGST in India.  In case of non-compliance, any information transmitted or hosted in computer resources for the supply of online money gaming may be blocked for public access.

Manner of levy of IGST on certain imported goods: The Act provides that IGST on goods imported into India will be levied and collected as per the provisions of the Customs Tariff Act, 1975.  The Bill exempts the levy of IGST in the above manner for goods notified by the central government on the recommendations of the GST Council.  IGST on such goods will be levied in the same manner as inter-state supply of goods.

Place of supply of goods: The Bill provides that for the supply of goods (that have not been imported or exported) to an unregistered person, the place of supply will be the address of the person recorded in the invoice.  In case the invoice does not have an address, the place of supply will be the location of the supplier.