The Central Board of Indirect Tax & Custom (CBIC) has notified the GST Rate of Lottery. 28% Uniform rate of GST will be applicable to all lotteries.
The amendment will be effective from March 1st 2020.
Through this amendment, there is no distinction for lottery authorized by State Governments and lottery run by State Governments for the purpose of taxability and, hence, the standard rate of 28% shall apply.
The notification was issued in the name of Pramod Kumar, Director of Government of India. Further, the Central Government on the recommendation of the Council of Ministers exercised their power under Section 9(1) and Section 15(5) of the Central Goods and Services Tax (CGST), 2017 seeks to amend the Notification No. 1/2017-Central Tax (Rate) which was issued on June 28, 2017, for the purpose notifying the rate of Goods and Service Rates (GST) on the supply of lottery.
In the Notification No. 1/2020-Central Tax (Rate), the following amendments are done:
1.In the Schedule II of Notification No. 1/2017-Central Tax (Rate): 6% for S. No. 242 was omitted through this notification.
2.In the Schedule IV of Notification No. 1/2017- 14% for S. No. 228 and the related entries, and the following was substituted namely:
Entry No. Chapter Subject
228 Any Chapter Lottery
Therefore, through this amendment in Schedule II S. No. 242 was omitted and in Schedule IV, the government introduce the Goods and Service Tax Rates (GST) rates pertaining to the lottery.
Further, a notification consisted of a note, which pertained to the Principle Notification No. 1/2017-Central Tax (Rate) that was published on the Gazette of India on June 28, 2017, Extra-ordinary, Part II, Section 3(i) vide number G.S.R. 673(E), dated 28th June 2017 and last amendment by Notification No. 27/2019-Central Tax (Rate) dated December 31, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3(i) vide number G.S.R. 961(E) dated December 30, 2019.
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