Single GST rate for all lotteries – 28%

written by GST expert | February 27, 2020

Currently Lottery is subject to 2 rates of GST:

  • 12% for Lottery run by State Governments Explanation 1.- For the purposes of this entry, value of supply of lottery under sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 shall be deemed to be 100/112 of the face value of ticket or of the price as notified in the Official Gazette by the organising State, whichever is higher. Explanation 2.- (1) “Lottery run by State Governments” means a lottery not allowed to be sold in any state other than the organising state. (2) Organising state has the same meaning as assigned to it in clause (f) of sub-rule (1) of rule 2 of the Lotteries (Regulation) Rules, 2010.
  • 28% for Lottery  authorized by State Governments (i.e. private lotteries) Explanation 1.- For the purposes of this entry, value of supply of lottery under sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 shall be deemed to be 100/128 of the face value of ticket or of the price as notified in the Official Gazette by the organising State, whichever is higher. Explanation 2.- (1) “Lottery authorized by State Governments” means a lottery which is authorized to be sold in State(s) other than the organising state also. (2) Organising state has the same meaning as assigned to it in clause (f) of sub-rule (1) of rule 2 of the Lotteries (Regulation) Rules, 2010.

However now after the notification the 12% rate has been omitted and now all the lotteries would be charged GST @28%.

The above description for 28% GST rate on lotteries has been changed to just lottery which means that all types of lotteries would be charged at same rate.

You can read the Notification HERE

 

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