Little Things Make Big Days.

GST on Lottery

The Central Government vide Notification No.08/2020-Central Tax, dated 2nd March 2020 has made the amendment in the CGST Rules 2017 to prescribe the value & GST Rate of Lottery with effect from the 1st March 2020.

Valuation
Sub-Rule (2) of rule 31A - The value of the supply of lottery shall be deemed to be 100/128 of the face value of the ticket or of the price as notified in the Official Gazette by the Organising State, whichever is higher.

Explanation:– For the purposes of this sub-rule, the expression “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.

GST Rate
The Central Government vide Notification No.01/2020-Central Tax (Rate) dated 21st February 2020 and Notification No.01/2020-Integrated Tax (Rate) dated 21st February 2020 has notified the uniform rate of GST on the supply of Lottery w.e.f. 1st March 2020 as 28% instead of the earlier differential rates of 12% on State-run and & 28% on State authorized lottery.