Lottery is a ‘Good’ under GST: Govt Clarifies [Read Circular]

In a circular addressing the issue related to classification and GST rate on lottery tickets, the Central Board of Excise and Customs (CBEC) has said that supply of lottery has been treated as supply of goods under the Central Goods and Services Tax (CGST) Act, 2017.

Earlier, the Board had received references stating that due to discrepancy in code allotted, i.e., lotteries are defined as goods but code allotted for lottery is under services, the assessees are not able to upload return or deposit tax in time.

“It should be noted that the process of filing return is linked with rate of tax specified for supply. Further, there is complete clarity about the rate of tax on lotteries. As mentioned above, in GST, lottery is goods and the classification indicated in the relevant notification for lotteries are “-”, which means any chapter,” the circular reads.

In view of the above, it was clarified that the classification for lottery in respective CGST, IGST, UTGST and SGST notifications shall be ‘Any Chapter’ of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and tax on lottery should be paid accordingly at prescribed rates, 12% or 28%, as the case may be.

Read the full text of the Circular below.