THE KARNATAKA GOODS AND SERVICES TAX ACT, 2017 Notifications
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Body NOTIFICATION (4-D/2023), No. FD 02 CSL 2023, Dated 30th September, 2023

In exercise of the powers conferred by section 164 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017) read with amended provisions of the Karnataka Goods and Services Tax (Amendment) Ordinance, 2023 (Karnataka Ordinance No. 04 of 2023), on the recommendations of the Council, the Government of Karnataka hereby makes the following rules further to amend the Karnataka Goods and Services Tax Rules, 2017, namely:-

RULES

1. Short title and commencement.-

(1) These rules may be called the Karnataka Goods and Services Tax (Fourth Amendment) Rules, 2023.

(2) Save as otherwise provided in these rules, they shall come into force on the 1st day of October, 2023.

2. Amendment of rule 8.-

In the Karnataka Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in rule 8, for sub-rule (1), the following sub-rule shall be substituted, namely:-

"(1) Every person who is liable to be registered under sub-section (1) of section 25 of the Act and every person seeking registration under sub- section (3) of section 25 of the Act (hereafter in this Chapter referred to as "the applicant"), except-

(i) a non-resident taxable person;

(ii) a person required to deduct tax at source under section 51 of the Act;

(iii) a person required to collect tax at source under section 52 of the Act;

(iv) a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14 of the Act or a person supplying online money gaming from a place outside India to a person in India referred to in section 14A under the Integrated Goods and Services Tax Act, 2017 (Central Act 13 of 2017),

shall, before applying for registration, declare his Permanent Account Number, State or Union territory in Part A of FORM GST REG-01 on the common portal, either directly or through a Facilitation Centre notified by the Commissioner:

Provided that, every person being an Input Service Distributor shall make a separate application for registration as such Input Service Distributor."

3. Amendment of rule 14.-

In rule 14 of the said rules,-

(i) in the heading, after the words "online recipient", the words "or to a person supplying online money gaming from a place outside India to a person in India", shall be inserted; and

(ii) in sub-rule (1), after the words "online recipient", the words "or any person supplying online money gaming from a place outside India to a person in India" shall be inserted.

4. Insertion of new rules 31B and 31C.-

After rule 31A of the said rules, the following rules shall be inserted, namely:-

"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.

31C. Value of supply of actionable claims in case of casino.-

Notwithstanding anything contained in this chapter, the value of supply of actionable claims in casino shall be the total amount paid or payable by or on behalf of the player for ,-

(i) purchase of the tokens, chips, coins or tickets, by whatever name called, for use in casino; or

(ii) 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:

Provided that, any amount returned or refunded by the casino to the player 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.

Explanation.- For the purpose of rules 31B and 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.

Note: The amendments made to the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017) by the Karnataka Goods and Services Tax (Amendment) Ordinance, 2023 (Karnataka Ordinance No. 04 of 2023) shall be without prejudice to the provisions of any other law for the time being in force, providing for prohibiting, restricting or regulating betting, casino, gambling, horse racing, lottery or online gaming. However,-

(a) imposition of tax on Casinos, Horse racing and Online Gaming does not regularise the said trade; and

(b) any crime committed in the course of the same is not immune from criminal action."

5. Amendment of rule 46.-

In rule 46 of the said rules, in clause (f), in the proviso, after the words "Provided that", the words "in cases involving supply of online money gaming or in cases", shall be inserted.

6. Substitution of rule 64.-

For rule 64 of the said rules, the following rule shall be substituted, namely: -

"64. Form and manner of submission of return by persons providing online information and data base access or retrieval services and by persons supplying online money gaming from a place outside India to a person in India.-

Every registered person either providing online money gaming from a place outside India to a person in India, or providing online information and data base access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14 of the Integrated Goods and Services Tax Act, 2017 (Central Act 13 of 2017) or to a registered person other than a non-taxable online recipient, shall file return in FORM GSTR-5A on or before the twentieth day of the month succeeding the calendar month or part thereof."

7. Amendment of rule 87.-

In rule 87 of the said rules, in sub-rule (3), in the second proviso, for the words and figures "section 14", the words, letters and figures "section 14, or a person supplying online money gaming from a place outside India to a person in India as referred to in section 14A," shall be substituted.

8. Amendment of FORM GST REG-10.-

In FORM GST REG-10 of the said rules,-

(i) for the heading, the following heading shall be substituted, namely:-

"Application for registration of person supplying online money gaming from a place outside India to a person in India or for registration of person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient in India.";

(ii) in Part A, in the table, after serial number (ii) and the entries relating thereto, the following serial number and entries shall be inserted, namely:-

(iia)

Type of supply

(a) Supply of online money gaming

(b) Supply of online information and database access or retrieval services

(iii) in Part B, in the table,-

(a) for serial numbers 2 and 3 and the entries relating thereto, the following serial numbers and entries shall be substituted, namely:

"2.

Date of commencement of the online service or online money gaming in India.

DD/MM/YYYY

Uniform Resource Locators (URLs) of the website/platform/name of the application, etc, as applicable through which online money gaming or online information and database access or retrieval services are provided:

3."

(b) for serial number 7 and the entries relating thereto, the following

serial number and entries shall be substituted, namely:-

Declaration

I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom.

I, ........................................ hereby declare that I am authorised to sign on behalf of the Registrant. I would charge and collect tax liable from the non-taxable online recipient located in taxable territory(in case of online information and database access or retrieval services) and/or from the recipient located in taxable territory (in case of online money gaming) and deposit the same with Government of India.

Place:	Signature
Date:	Name of Authorised Signatory:
	Designation:"

(iv) in the Instructions, in item 2, after the words and figures "section 14", the words and figures "or section 14A, as the case may be," shall be inserted.

9. Substitution of FORM GSTR-5A.-

For FORM GSTR-5A of the said rules, for the following form shall be substituted, namely:-

"FORM GSTR-5A

[See rule 64]

Details of supplies of online information and database access or retrieval services by a person located outside India made to non-taxable online recipient (as defined in Integrated Goods and Services Tax Act, 2017) and to registered persons in India and details of supplies of online money gaming by a person located outside India to a person in India

1. GSTIN of the supplier-

2. (a) Legal name of the registered person -

(b) Trade name, if any -

3. Name of the Authorised representative in India filing the return -

4. Period: Month - ____ Year -

4(a) ARN:

4(b) Date of ARN:

5. Taxable outward supplies of online information and database access or retrieval services made to non-taxable online recipient in India

(Amount in Rupees)

Place of supply (State/UT)	Rate of tax	Taxable value	Integrated tax	Cess
1	2	3	4	5

5A Amendments to taxable outward supplies of online information and database access or retrieval services to non- taxable online recipient in India

(Amount in Rupees)

Month	Place of supply (State/UT)	Rate of tax	Taxable value	Integrated tax	Cess
1	2	3	4	5	6

5B. Taxable outward supplies of online information and database access or retrieval services made to registered persons in India, other than non-taxable online recipient, on which tax is to be paid by the said registered persons on reverse charge basis

(Amount in Rupees)

GSTIN	Taxable Value
1	2

5C. Amendments to the taxable outward supplies of online information and database access or retrieval services made to registered persons in India, other than non-taxable online recipient, on which tax is to be paid by the said registered persons on reverse charge basis

(Amount in Rupees)

Month	Original GSTIN	Revised GSTIN	Taxable value
1	2	3	4

5D. Supplies of online money gaming made to a person in India

(Amount in Rupees)

Place of supply (State/UT)	Rate of tax	Taxable value	Integrated tax	Cess
1	2	3	4	5

5E. Amendments to supplies of online money gaming made to a person in India

(Amount in Rupees)

Month	Place of supply (State/UT)	Rate of tax	Taxable value	Integrated tax	Cess
1	2	3	4	5	6

6. Calculation of interest, or any other amount

(Amount in Rupees)

Sr. No	Description	Place of supply(State/UT)	Amount due (Interest/ Other)
Sr. No	Description	Place of supply(State/UT)	Integrated tax	Cess
1	2	3	4	5
1	Interest
2	Others
	Total

7. Tax, interest, and any other amount payable and paid

(Amount in Rupees)

Sr. No.	Description	Amount payable		Debit entry no.	Amount paid
Sr. No.	Description	Integrated Tax	Cess	Debit entry no.	Integrated Tax	Cess
1	2	3	4	5	6	7
1	Tax Liability (based on Table 5, 5A, 5D and 5E)
2	Interest (based on Table 6)
3	Others (based on Table 6)

Verification

I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom.

Place:	Signature
Date:	Name of Authorised Signatory:
	Designation/ Status"

By Order and in the name of the

Governor of Karnataka

(KAVITHA L)

Under Secretary to Government,

Finance Department (C.T-1)