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‘Online Gaming’ will be covered under services under the GST Act, the SAC will be 998439

Classification of service— The applicant, seeking an advance ruling in respect of the following questions. 1) Whether “e-goods”, as commercially known in the market, are “goods” as defined in the GST Acts or are they services as per GST Act? 2) If they are goods, what is the HSN classification and if services, what is the service classification and rate of GST on its sale/ supply within state? 3) Whether they are exempted from GST? 4) If Not exempted, what is the rate of GST on supply? 5) In what circumstances will IGST, under reverse charge, be applicable or whether it is applicable in the situation of procurement from foreign supplier and supply from out of India as discussed above? 6) If the customer is from India and paying the consideration in dollar, whether it will be allowed as exports or if not allowed as exports then whether GST is leviable? What is rate of SGST & CGST or IGST? Under which HSN Code or SAC? 7) If customer pays for the e goods in Indian rupees and goods delivered through CLOUD located outside India whether SGST & CGST or IGST leviable on such transactions? 8) In case where customer / buyer is from out of India and payment is done in dollar, according to us it is export of goods / services and therefore neither SGST & CGST is leviable? Please clarify the same. 9) In case buyer is from India, the goods/ services are stored in CLOUD which are the servers outside India, therefore even though payment is received in rupees, it is again export of services being services are received from distantly installed servers. Hence No CGST and or SGST is leviable? 10) Whether IGST is applicable under section 5(3) & 5(4) of the IGST Act, according to us it is not of because it is not imported into India and the services are stored on CLOUD and therefore it cannot be said to be imports and thus not liable for RCM ? 11) If suppose RCM is applicable then its rate? May please be clarified. Held that— the first question posed by the applicant i.e. e-goods (in this case online gaming) will be considered as services under the GST Laws. The next three questions are regarding classification of the above said services, and the rate of GST on such, if the same are not exempted. We find that the subject services i.e. online gaming falls under SAC 998439. All services covered under the Heading 9984 attract a GST rate of 18%. In cases where the supplier of such service is located outside India and the recipient is a business entity (registered person) located in India, the reverse charge mechanism would get triggered and the recipient in India who is a registered entity under GST will be liable to pay GST under reverse charge and undertake necessary compliances. If the supplier is located outside India and the recipient in India is an individual consumer not registered under GST Laws, in such cases also the place of supply would be India and the transaction is amenable to levy of GST. In such case the individual should obtain registration and pay GST under reverse charge.