President Droupadi Murmu has given her assent to the Central Goods and Services Tax (Amendment) Bill, 2023. This bill is made to define which of the following?
I. Defines the expressions online gaming, online money gaming.
II. Virtual digital assets .

Correct option is D

The correct answer is (d) Both I and II

Explanation:

The Central Goods and Services Tax (Amendment) Bill, 2023, introduced precise definitions for several terms to enhance clarity and ensure proper taxation under the GST framework.​

• Statement I: Defines the expressions online gaming and online money gaming.
  The amendment inserted definitions for both "online gaming" and "online money gaming" into the CGST Act:​
• Online gaming: Defined as "offering of a game on the internet or an electronic network and includes online money gaming."​
• Online money gaming: Defined as online gaming where players pay or deposit money or money's worth, including virtual digital assets, with the expectation of winning money or money's worth. ​
• Statement II: Virtual digital assets.
  The amendment also introduced a definition for "virtual digital asset" to encompass digital representations of value, such as cryptocurrencies and non-fungible tokens (NFTs), which can be used in transactions and are subject to taxation under the GST regime.

Information Booster:

1. Specified Actionable Claims: The amendment brought certain activities like betting, gambling, and online money gaming under the purview of GST by classifying them as "specified actionable claims." 

2. Mandatory Registration: Entities supplying online money gaming services from outside India to individuals in India are now required to register under the GST Act, ensuring compliance and taxation of cross-border digital services. ​

Virtual Digital Assets (VDA) – As per the Income Tax Act

• Definition: Any information, code, number, or token (not being Indian or foreign currency) created through cryptographic means or otherwise.
• Can be transferred, stored, or traded electronically.
• Explicitly includes:
• Non-Fungible Tokens (NFTs)
• Any similar tokens, regardless of naming

Non-Fungible Tokens (NFTs) – Key Points

• Definition: Digital assets tokenized via blockchain, each with a unique ID and metadata, non-interchangeable.
• Uniqueness: Each NFT is distinct, unlike fungible tokens like cryptocurrencies.
• Tradability: Can be bought, sold, or exchanged using money, crypto, or other NFTs.
• Use Cases:
• Digital artwork, music, videos
• Real estate and virtual land
• Identity verification, property rights