MADHYA PRADESH ORDINANCE

NO. 2 Of 2023

THE MADHYA PRADESH GOODS AND SERVICES TAX (AMENDMENT) ORDINANCE, 2023

[First published in the "Madhya Pradesh Gazette (Extra-ordinary)", dated the 27111 September, 2023.]

Promulgated by the Governor of Madhya Pradesh in the Seventy-fourth year of the Republic of India.

An Ordinance further to amend the Madhya Pradesh Goods and Services Tax Act, 2017.

Whereas, the State Legislature is not in session and the Governor of Madhya Pradesh is satisfied that circumstances exist which render it necessary for him to take immediate action;

Now, therefore, in exercise of the powers conferred by clause (I) of Article 213 of the Constitution of India, the Governor of Madhya Pradesh is pleased to promulgate the following Ordinance, namely:-

1. Short title and commencement.

(1) This Ordinance may be called the Madhya Pradesh Goods and Services Tax (Amendment) Ordinance, 2023.

(2) It shall come into force on such date as the State Government may, by notification in the official Gazette, appoint:

Provided that different dates may be appointed for different provisions of this Ordinance and any reference in any such provision to the commencement of this Ordinance shall be construed as a reference to the coming into force of that provision.

2. During the period of operation of this Ordinance, the Madhya Pradesh Goods and Services Madhya Pradesh Tax Act, 2017 (No. 19 of 2017) (hereinafter referred to as the principal Act), shall have effect Act No. 19 of subject to the amendments specified in Section 3 to 6 2017 to be temporarily amended.

3. Amendment of Section 2.

In Section 2 of the principal Act,-

(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) in clause (105), at the end, for the full stop, the colon shall be substituted and thereafter, the following proviso shall be inserted, namely:-

"Provided that a person who organizes 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 lax 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 (43 of 1961);";

4. Amendment of Section 24.

In Section 24 of the principal Act, in clause (xi), the word "and" occurring at the end, shall be omitted and thereafter 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".

5. Amendment of Schedule III.

In Schedule III of the principal Act, in paragraph 6, for the words "lottery, betting and gambling" the words "specified actionable claims" shall be substituted.

6. 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.

MANGUBHAI C. PATEL

Governor,

Madhya Pradesh.