The Central Board of Indirect Tax & Custom (CBIC) has notified the GST Rate on Lottery at the rate of 28 per cent, levied from 1st March 2020. In 38th GST Council meeting held in December 2019, GST Council decided to impose a single rate of 28 percent on state-run and state authorised lotteries.
‘Lottery run by State Governments’ means a lottery that can not be sold in any State other than the organizing State. ‘Lottery authorized by State Governments‘ means a lottery which is also authorized for sale in States other than the organizing State.
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The CBIC department issued Notification No. 1/2020-Central Tax (Rate). With this, CBIC notified the GST rate on supply of lottery by amending the earlier Notification No.1/2017-Central Tax (Rate), dated the 28th June, 2017,
Accordingly, the Central Tax rate for Lottery has amended to 14 percent, and the states will charge the similar percentage. That will make the total GST rate on lottery to 28 per cent. This notification will come into force from March 1st, 2020.
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There were demands that an uniform tax rate should levy on lotteries, following which a group of ministers were set up to recommend the GST rate on the supply of lotteries. After that, in December, the GST Council voted for a single rate on lottery at the rate of 28 percent. Through this amendment, there will be no distinction between lottery run by State Governments and lottery authorised by State Governments for the taxability purposes.
Currently, 12% GST is levied on lotteries sold within a state and 28% GST is levied on lotteries sold outside the state.
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The text of Notification No. 1/2020-Central Tax (Rate) is as follows-
In exercise of the powers conferred by sub-section (1) of section 9 and sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.1/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28th June, 2017, namely:-
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In the said notification, –
- in Schedule II – 6%, S. No. 242 and the entries relating thereto shall be omitted;
- in Schedule IV – 14%, for S. No. 228 and the entries relating thereto, the following S. No. and the entries shall be substituted, namely: –
| “228. | Any chapter | Lottery”. |
2. This notification shall come into force on the 1st day of March, 2020.
[F.No.354/18/2019-TRU](Pramod Kumar) Director to the Government of India
Note: – The principal notification No.1/2017-Central Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 673(E), dated the 28th June, 2017 and last amended by Notification No. 27/2019-Central Tax(Rate) dated 30th December, 2019 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 961(E), dated the 30th December, 2019.
