Notification No – 1/2020 (Central Tax – Rate)
Date – 21st February 2020
Seeks to amend notification No. 1/2017- Central Tax (Rate) dated
28.06.2017 so as to notify rate of GST on supply of lottery.
| Notification No. – 1/2017-Central Tax (Rate) dated 28th June 2017 | Notification No. – 1/2020- Central Tax (Rate) dated 21st February, 2020 | |
| S. No. & Schedule | Description of Goods | Amendment |
| 242. Of Schedule II(6%) | 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 bedeemed 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. |
Will be omitted from 1st March 2020 |
| 228. Of Schedule IV(14%) |
Lottery authorized 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 100/128 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 |
The following S. No. and the entries shall be substituted, and would be effective from 1st March 2020 |
Currently, a state-run lottery attracts 12 % GST, while a state-authorised lottery attracts 28 % GST
So , there were demands to fix an uniform tax rate on lotteries
Accordingly in GST Council meeting held in December 2019 it was decided that 28% Goods and Services Tax (GST) will be
levied on lotteries from March 1, according to Notification No. – 1/2020-Central Tax (Rate) dated 21st February, 2020 on
state-run and authorised lotteries.
