Is GST applicable to the lottery?

Yes, Goods and Service Tax is applicable on Lotteries. A 28% GST is charged on lotteries as per the revenue department. The Central Tax rate for a lottery is 14% for which a similar rate to be levied by the state on the supply of lotteries.

What is the tax rate levied by state-authorized and state-organized lottery?

CGST Act and SGST Act have not done any discrimination between the lotteries run by the State Government and the lotteries authorized by the State organized lotteries. The lotteries that are authorized by The State Government in another State attract a total 28% GST, with 14% each under the CGST and SGST.

Is lottery winning taxable in India?

Yes, if you win a lottery, the income is taxable in India. There is a flat rate on lottery wining that is 30% with the addition of tax it amounts 31.2%. There is no Goods and Service Tax in this Lottery winning.

What are State-run Lotteries?

State-run Lotteries are a game of luck operated by the State Government. Basically, lotteries offer a person a chance to win a huge amount in exchange for a lesser amount.

The Tax revenue that is generated from the sale of Lotteries has been the major source of Exchequer for the Government. The present rate of lotteries which are run by State Government attracts about 12% GST while those which are authorized by them and sold outside afterwards with 28% GST.

GST Taxation on Lottery Tickets

By Online Legal India Published On 16 Dec 2020 Updated On 06 Jan 2023 Category Taxation

Lottery Tickets come under the category of ‘actionable ticket’ and that’s why are considered as ‘Goods’ under the GST regime. The selling of lottery tickets comes under the supply of taxable goods and therefore, GST is levied on the sale of lottery tickets.

Earlier, there used to be separate rates for lotteries sold in our country. Let us look at the rates-

If Run by State Government- 12% GST is levied on the tickets.
If Authorised by State Government- 28% GST is levied on the tickets.

Nonetheless, after a new notification from the 31st GST Council Meeting, the uniform GST rate for the lottery has been notified as 28% for all kinds of lottery tickets sold in India.

The supply of lottery is covered by Tax Invoice which includes all the necessary provisions and invoicing standards for a lottery ticket manufacturer cannot be relaxed.

Time of Supply of Lottery Tickets

1) Date of issuing the invoice or last date to issue an invoice.

2) Date of receiving the supply payment.

If a person or consumer pays the sum for a draw or purchases a lottery ticket, supply payment is the money paid.

Place of Supply of Lottery Tickets

1) Lottery run by State Government- is intra-state always. The place of supply will be the State that runs the lottery game.

2) Lottery authorized by the State Government-but conducted by agencies can be regional or intra-state supply.

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