Page 17 - Chapter 6_Value of Supply

Ü Casino Gaming (Rule 31C): The value is the total amount paid by the player for purchasing chips.
Ü Note: Any winnings that are immediately reused for further play (without withdrawal) are not counted as
payment.
Discussion & Conclusion:-
i) Case Details: Mr. Gadbad paid ₹10,000 for an online gaming bet and another ₹10,000 for a casino chip. Thus,
under the rules:
† The supply value is ₹10,000 for each.
† The GST payable is 28% of ₹10,000, which is ₹ 2,800 for each.
ii) Redeployed Winnings: When his total stake becomes ₹13,000 in the next bet or chip, the extra ₹3,000 (which
comes from his winnings) is not subject to GST.
iii) Fresh Chip Scenario: If Mr. Gadbad loses a ₹10,000 bet in the casino and then places another ₹10,000 bet, that
new bet is treated as a fresh chip. Its value is again ₹10,000, and the GST payable is ₹ 2,800 (28% of ₹10,000).

Q.18
VOS Fortune 365 is an online money gaming platform operating from UAE. It provides its users a
platform to play and win money in different games that are available on its portal.
In the month of December, Player A, an unregistered person located in India, deposited an amount of ₹
10,000 (inclusive of GST) in the master wallet available on the portal of Fortune 365. Subsequently, following
transactions were undertaken by Player A in said month:
(i) Player A utilized the amount of ₹ 2,000 from the master wallet towards playing a virtual racing game on
the portal. As a winning amount, ₹ 10,000 was credited to the master wallet of Player A.
(ii) On another portal operated by Fortune 365 in the name of Bet 180, Player A placed a bet of face value of ₹
11,000 on an international wrestling match. The amount of such bet was paid by the master wallet of
Player A. However, he lost the bet and hence the bet amount of ₹ 11,000 with applicable taxes was
transferred from the master wallet to the bank account of Bet 180.
(iii) Player A transferred the balance amount from the master wallet to his bank account after the aforesaid
transactions. Assume all the above transactions to be exclusive of GST unless otherwise specified.
(iv) Rate of GST applicable is 28% (Please ignore the bifurcation of GST amount into CGST, SGST and IGST.)
Based on the information provided above, answer the following questions, providing brief reasons :
1) Compute the total GST payable on the aforesaid given transactions.
2) Determine the net amount transferred by Player A to his bank account after the aforesaid transactions.
[CA Final RTP May 24]
Answer:- Legal Provision :-
Ü As per Rule 31B of CGST Rules 2017, 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.
Ü As per Rule 31A, the value of supply of actionable claim in the form of chance to win in betting shall be 100%
of the face value of the bet or the amount paid into the totalisator.
Discussion & Conclusion :

1) Total GST payable on given transactions is as follows :
Ü Value of supply of online money gaming: Total amount deposited with the supplier by the player as per
rule 31B
= Initial deposit of ₹10,000 (inclusive of GST) by Player A with Fortune 365 after excluding GST
= ₹ 7,812.50 (₹ 10,000 × 100/128)
GST payable = ₹ 7,812.50 × 28% = ₹ 2,188 [A]
Ü Value of supply of online bet: 100% of the face value of the bet in terms of rule 31A = ₹ 11,000
GST payable = ₹ 11,000 × 28% = ₹ 3,080 [B]
Total amount of GST that would be collected by the Government on the given transactions =
[A] + [B] = ₹ 5,268 (rounded off)

V’Smart Academy 6.15 CA Vishal Bhattad 09850850800