The Central Government, on the recommendations of the Council, has changed certain rules regarding the value of supply of lottery further to amend the Central Goods and Services Tax Rules, 2017 in the exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017).
Last week, CBIC has notified a uniform rate of 28% for lottery. In order to streamline the valuation rule for the lottery with the uniform rate, rules for value of supply of lottery under GST has been modified. From March 1, 2020, the value of lottery shall be 100/128 of the face value of the ticket or the price as notified in the Official Gazette by the Organising State, whichever is higher.
The rules, which are proposed may be called the Central Goods and Services Tax (Second Amendment) Rules, 2020. These rules come into force on the date of their publication in Official Gazette.
In the Central Goods and Services Tax Rules, 2017, with effect from the 1st March 2020, in rule 31A, for sub-rule (2), the following sub-rule shall be substituted, namely:-
“The value of 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.
Elaborated as 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 Lottery (Regulation) Rules, 2010.”
