By CA Vipul Khnadhar
- Person supplying of Online Money Gaming services or OIDAR or Both– Form GST REG-10 and Form GSTR-5A:
General: In terms of the recent amendments made in the CGST/SGST Act, the IGST Act and the CGST/SGST Rules, any person located outside taxable territory making supply of online money gaming to a person in taxable territory, is liable to get registered in GST and is required to pay tax on such supply. In this context, every person located outside taxable territory making such supplies of online money gaming to a person in India is now mandated to take registration/amend his existing registration in accordance with the proposed Row (iia) in FORM GST REG-10 and also required to furnish information regarding the supplies in the proposed Tables in FORM GSTR-5A. GSTN is in the process of developing the functionality of such new registrations or required amendment in existing registration, as the case may be. In the meantime, till the said functionality is made available on the portal, a workaround is suggested to be followed as below:
- Registration (Form GST REG-10):
a) As per the proposed amendments, person engaged in the supply of Online money gaming are required to identify themselves as being engaged in such supplies in Form GST REG-10. Further, new registrations in respect of such supplies may also be required, for which application may have to be filed in the said FORM GST REG-10 and also the ‘Type of Supply’ may be required to be declared in Row (iia) of the Form GST REG-10 while applying for registration. Existing already registered taxpayers of OIDAR services also would have to amend their registrations by furnishing the said information at Row (iia).
b) As a workaround, it is hereby advised that any person engaged in the supply of Online Money Gaming, who is required to be registered in accordance with the recent amendments, can file their registration application in the existing Form GST REG-10 itself. Along with the said application, such person will also be required to upload a pdf copy of the information furnished in Row 2(iia) of the amended FORM GST REG-10 in the ‘Documents Upload’ section available in the Part -A of Form GST REG-10 (in the enclosed format).
2. Return(Form GSTR-5A):
a) Person engaged in the supply of Online Money Gaming are required to furnish the details of such supplies in Table 5D and 5E of Form GSTR-5A.
b) Till such tables are developed and added in Form GSTR-5A on the portal, persons engaged in making supplies of Online Money Gaming are hereby advised to furnish the details of such supplies in the existing Tables 5 and 5A of Form GSTR-5A itself.
2. The Railways service & sale of old/used goods now liable for the gst on forward charge basis from 1.10.23 onwards for the supply of various services and sale of old, used goods and waste and scrap:
All Services supplied by Indian Railways shall be under forward charge.
3. Rent a Cab Service:
Rent a cab service from non-body corporates to body corporates is under reverse charge. For others under forward charge, they have an option to charge 5% or 12%. For operators who charge 5% GST (when cost of fuel was included in the price) and take back-to-back service from sub-contractors who charge 12% GST, it used to create an artificial inverted duty structure for the same service. Now this anomaly has been rectified by limiting the ITC to 5% only.
Further renting of omnibus to ECO Notification No. 16/2023 – Central Tax (Rate) amends Not. No.17/2017-Central Tax (Rate) w.r.t. Reverse Charge on ‘services supplied through an e-commerce operator’ (effective date today i.e. 20th October 2023) – With effect from 1 January 2022, liability to pay GST on bus transportation services supplied through Electronic Commerce Operators (ECOs) has been placed on the ECO under section 9(5) of CGST Act, 2017. This trade facilitation measure was taken on the representation of industry association that most of the “bus operators” supplying service through ECO owned one or two buses and were not in a position to take registration and meet GST compliances. To arrive at a balance between the need of small operators for ease of doing business and the need of large organized players to take ITC, GST Council had recommended that bus operators organised as companies may be excluded from the purview of section 9(5) of CGST Act, 2017.
4. Service to government has been exempted Notification No. 13/2023 – Central Tax (Rate) exemption of ‘services’ (effective date today i.e. 20th October 2023)
A. Government Services –
The following services provided to “Government Authority” shall be exempt –
- water supply;
- public health;
- sanitation conservancy;
- solid waste management; and
- slum improvement and
This entry will be important to all private players which are providing the services to a ‘Government Authority’ only. It is important to note that no exemption shall be provided when the supply is to a “Government Entity”.
5. Contractor will eligible for refund the Notification No. 15/2023 – Central Tax (Rate) inverted duty structure on construction services: (effective date today i.e. 20th October 2023):
In case of ‘works contract’ w.r.t. infra projects and other constructions too. By amendment of the said notification, this issue is clear now. Inverted duty refund can only be denied for construction of a complex, building, etc and not for infra and other projects not coming under the said ambit.
6. No inverted refund on supply of Imitation zari thread or yarn made out of metallised polyester film /plastic film has not been eligible for Notification No. 20/2023 – (effective date today i.e. 20th October 2023):
This clarifies that imitation zari thread or yarn made out of metallised polyester film /plastic film, falling under HS 5605, are covered by the entry for imitation zari thread or yarn attracting 5% GST rate. However, no refund will be allowed on polyester film (metallised) /plastic film on account of inversion.
7. AAR & Important Decisions:
(i) AAR On distribution of gold coins, white goods and discount coupons given to incentivise sales would be treated as supply of goods and hence the Goods and Services Tax (GST) would be imposed on them:
(Applicant – M/s Orient Cement Limited)
The ruling is important as Section 17(5) (h) of the Central GST (CGST) Act bars claims of ITC on gifts or free samples.
Telangana-based Orient Cement Limited offers different kinds of incentives, including gold coins, white goods and discount coupons, to its dealers and customers who meet sales targets or help the product.
The company believed that these offers cannot be regarded as gifts since dealers and customers are eligible for them on the basis of the terms and conditions of various schemes. It approached the AAR with this and a couple of other queries.
The AAR ruled that these transactions are eligible for ITC. However, the authority did not agree with the company that these offers are not a supply since these are without consideration. GST is imposed on supply of goods and services only.
This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.
( The author is a well known chartered accountant practicing at Ahmedabad )