NEW GST RATE on Supply of Lottery Ticket


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  1. Definition of Lottery Tickets under GST:-

As per Schedule III Actionable Claim is neither supply of Goods nor Supply of Service, but Lottery Tickets is exception to this. It is considered under actionable claim and is classified as ‘Goods’.

Hence, the sale of lottery tickets would be considered to be the supply of taxable goods and will attract GST on Lottery sales.

  1. Before Amendment Different GST rate on Supply of Lottery as under.

If Lottery Run by State Government:- GST Rate is 12%.
If Lottery authorized by State Governments:- 28%.

What is mean by Lottery run by State Governments?

It means a lottery not allowed to be sold in any state other than the organizing state.

What is mean by Lottery authorized by State Governments’?

It means a lottery which is authorized to be sold in State(s) other than the organizing state also.

  1. Valuation of Supply of Lottery & New Rate on Lottery

As per sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 Value of supply of lottery 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 organizing State, whichever is higher & after valuation rate should be charged @28% on both type of supply

  1.   Time of Supply of Lottery Tickets:-

1) Date of issue of invoice or last date when the supplier is required to issue an invoice.
2) Date on which supplier receives the payment for supply.

Whichever is Earlier.

When a person pays the amount to participate in a lottery or to buy the lottery ticket, the amount of money paid to participate is treated as payment for supply.


  1. Place of Supply of Lottery Tickets:-

1) “Lottery run by State Government” is always an intra-state supply. The place of supply will always be the State which runs the lottery game. This is because such a lottery scheme is always conducted within the State.

2) “Lottery authorized by the State Government” but conducted by agencies can be an inter-state or intra-state supply.

The place of supply will have to be determined as under:

  1. i) When supply involves the movement of goods:
    The place of supply shall be the location of goods at the time at which movement of goods terminates for delivery to the recipient.
  2. ii) When supply does not involve the movement of goods:
    The place of supply shall be the location of goods at the time of delivery to the recipient.


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