THE KARNATAKA GOODS AND SERVICES TAX (SECOND AMENDMENT) ACT, 2023
Arrangement of Section
Sections:
1. Short title and commencement
2. Amendment of section 2
3. Amendment of section 24
4. Amendment of Schedule III
5. Transitory provision
6. Repeal and savings
STATEMENT OF OBJECTS AND REASONS
Amendment Act 02 of 2024:- With the recommendations of GST Council, in its 51st meeting held on 02-08-2023, sections 2, 24 and Schedule III of the Central Goods and Services Tax Act, 2017 (Central Act No. 12 of 2017) was amended relating to the online gaming, online money gaming, specified actionable claims and virtual digital asset have been incorporated by the Central Goods and Services (Amendment) Act, 2023 (Central Act No. 30 of 2023).
Whereas, the GST Council Secretariat has communicated on 11-08-2023 to incorporate the corresponding amendments in respective state Goods and Services Tax Act with effect from 01-10-2023. Therefore It is considered necessary further to amend the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017).
As the matter was urgent and both Houses of the State Legislature were not in a session, The Karnataka Goods and Services Tax (Amendment) Ordinance, 2023 (Karnataka Ordinance 04 of 2023) was promulgated to achieve the above object.
The amendments made under the Karnataka Goods and Services Tax (Amendment) Ordinance, 2023 (Karnataka Ordinance 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.
This Bill seeks to replace the said Ordinance.
Hence, the Bill.
[L.A. Bill No.19 of 2023, File No. SAMVYASHAE 27 SHASANA 2023]
[Article 246A and entry 60 of List II of the Seventh Schedule to the Constitution of India.]
[Published in Karnataka Gazette Extra-ordinary No.44 in part-IVA dated:30.01.2024]
KARNATAKA ACT NO.02 OF 2024
(First Published in the Karnataka Gazette Extra-ordinary on the 30th day of January, 2024)
THE KARNATAKA GOODS AND SERVICES TAX (SECOND AMENDMENT) ACT, 2023
(Received the assent of the Governor on the 29th day of January, 2024)
An Act further to amend the Karnataka Goods and Services Tax Act, 2017.
Whereas, it is expedient further to amend the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), for the purpose hereinafter appearing;
Be it enacted by the Karnataka State Legislature in the Seventy-fourth year of the Republic of India as follows:-
1. Short title and commencement.- (1) This Act may be called the Karnataka Goods and Services Tax (Second Amendment) Act, 2023.
(2) It shall be deemed to have come into force with effect from 1st day of October 2023.
2. Amendment of section 2.- In the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the principal Act), in section 2,
(a) after clause (80), the following clauses shall be inserted, namely:-
“(80A) "online gaming" means offering of a game on the internet or an electronic network and includes online money gaming;
(80B) "online money gaming" means online gaming in which players pay or deposit money or money's worth, including virtual digital assets, in the expectation of winning money or money's worth, including virtual digital assets, in any event including game, scheme, competition or any other activity or process, whether or not its outcome or performance is based on skill, chance or both and whether the same is permissible or otherwise under any other law for the time being in force;”
(b) after clause (102), the following clause shall be inserted, namely:-
“(102A) "specified actionable claim" means the actionable claim involved in or by way of
(i) betting;
(ii) casinos;
(iii) gambling:
(iv) horse racing:
(v) lottery; or
(vi) online money gaming;”
(c) after clause (105), the following proviso shall be inserted, namely:-
"Provided that, a person who organises or arranges, directly or indirectly, supply of specified actionable claims, including a person who owns, operates or manages digital or electronic platform for such supply, shall be deemed to be a supplier of such actionable claims, whether such actionable claims are supplied by him or through him and whether consideration in money or money's worth, including virtual digital assets, for supply of such actionable claims is paid or conveyed to him or through him or placed at his disposal in any manner, and all the provisions of this Act shall apply to such supplier of specified actionable claims, as if he is the supplier liable to pay the tax in relation to the supply of such actionable claims;"
(d) after clause (117), the following clause shall be inserted, namely:-
„(117A) "virtual digital asset" shall have the same meaning as assigned to it in clause (47A) of section 2 of the Income-tax Act, 1961(Central Act No 43 of 1961);".
3. Amendment of section 24.- In section 24 of the principal Act,
(a) in clause (xi), the word "and", occurring at the end, shall be omitted;
(b) after clause (xi), the following clause shall be inserted, namely:-
"(xia) every person supplying online money gaming from a place outside India to a person in India; and".
4. Amendment of Schedule III.- In the principal Act, in Schedule III, in paragraph 6, for the words "lottery, betting and gambling", the words "specified actionable claims" shall be substituted.
5. Transitory provision.- The amendments made under this Act 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.
6. Repeal and savings.- (1) The Karnataka Goods and Services Tax (Amendment) Ordinance, 2023 (Karnataka Ordinance 04 of 2023) is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the principal Act, as amended by the said Ordinance, shall be deemed to have been done or taken under the principal Act, as amended by this Act.
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