Section 14A of The Integrated Goods and Services Tax Act, 2017
1[14A. Special provision for specified actionable claims supplied by a person located outside taxable territory. —(1) A supplier of online money gaming as defined in clause (80B) of section 2 of the Central Goods and Services Tax Act, 2017 (12 of 2017), not located in the taxable territory, shall in respect of the supply of online money gaming by him to a person in the taxable territory, be liable to pay integrated tax on such supply.
- (2)For the purposes of complying with provisions of sub-section (1), the supplier of online money gaming shall obtain a single registration under the Simplified Registration Scheme referred to in sub-section (2) of section 14 of this Act: Provided that any person located in the taxable territory representing such supplier for any purpose in the taxable territory shall get registered and pay the integrated tax on behalf of the supplier: Provided further that if such supplier does not have a physical presence or does not have a representative for any purpose in the taxable territory, he shall appoint a person in the taxable territory for the purpose of paying integrated tax and such person shall be liable for payment of such tax.
- (3)In case of failure to comply with provisions of sub-section (1) or sub-section (2) by the supplier of the online money gaming or a person appointed by such supplier or both, notwithstanding anything contained in section 69A of the Information Technology Act, 2000 (21 of 2000), any information generated, transmitted, received or hosted in any computer resource used for supply of online money gaming by such supplier shall be liable to be blocked for access by the public in such manner as specified in the said Act.]
Summary
- This section sets special tax rules for suppliers of online money gaming who are located outside India.
- Any supplier of online money gaming located outside India who provides these gaming services to a person inside India is liable to pay the integrated tax.
- To pay this tax, the foreign supplier must obtain a single registration under the Simplified Registration Scheme established under Section 14(2) of the Act.
- If the foreign supplier has a representative in India, that representative must register and pay the tax on their behalf.
- If the supplier fails to comply with registration or tax payment, the government can block public access to their gaming websites, apps, and computer resources.
Practical examples
FAQ
1. Who is liable to pay tax for online money gaming supplied from outside the taxable territory?
The supplier of the online money gaming services located outside the taxable territory is liable to pay the integrated tax.
2. Which registration scheme must the foreign online money gaming supplier use?
The supplier must register under the same Simplified Registration Scheme mentioned in sub-section (2) of Section 14 of the Act.
3. What penalty or action can be taken if the foreign gaming supplier fails to comply with the rules?
The computer resources and information used for the online money gaming can be blocked for public access in India.
4. What happens if the foreign gaming supplier has a representative in India?
The representative must get registered and pay the integrated tax on behalf of the foreign supplier.
Test yourself
Q1.Under Section 14A of The Integrated Goods and Services Tax Act, 2017, a supplier of online money gaming located outside the taxable territory must obtain tax registration under which specific scheme referred to in another section of the Act?
Q2.Under Section 14A of The Integrated Goods and Services Tax Act, 2017, what consequence can a foreign online money gaming supplier face if they fail to register or pay the integrated tax?
Q3.Under Section 14A of The Integrated Goods and Services Tax Act, 2017, who is liable to pay the integrated tax if a supplier of online money gaming located outside India has a representative in India?
Q4.Under Section 14A of The Integrated Goods and Services Tax Act, 2017, which other Act's blocking provisions are bypassed or applied notwithstanding their original limitations to block non-compliant online money gaming websites?
Q5.Under Section 14A of The Integrated Goods and Services Tax Act, 2017, how does the registration requirement for an online money gaming supplier compare to the OIDAR registration scheme under Section 14?