Circular no-06/2017-F. No. 354/149/2017-TRU-CGST dated 27.08.2017 is issued to clarify classification and GST rate on lottery

Circular No.06/06/2017-CGST

F. No. 354/149/2017-TRU
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit

New Delhi, the 27th August, 2017


The Principal Chief Commissioner/Chief Commissioners/ Principal Commissioner/Commissioner of Central Tax (All) / Director General of Systems

Subject: – Issue related to classification and GST rate on lottery tickets – regarding

Supply of lottery has been treated as supply of goods under the Central Goods andServices Tax (CGST) Act, 2017.

2. Accordingly, based on the recommendation of the GST Council, the GST rate for supplyof lottery has been notified under relevant GST rate notification relating toCGST/IGST/UTGST/SGST. However, entries in the respective notifications mentionclassification for lottery as “-”.

3. In this connection, references have been received, inter-alia, stating that due todiscrepancy in code allotted, i.e., lottery is defined as goods but code allotted for lottery is underservices, the assessees are not able to upload return or deposit tax in time.

4. The matter has been examined. It should be noted that the process of filing return islinked with rate of tax specified for supply. Further, there is complete clarity about rate of tax onlotteries. As mentioned above, in GST, lottery is goods and the classification indicated inrelevant notification for lottery is “-”, which means any chapter.

5. That being so, it is clarified that the classification for lottery in respective CGST, IGST,UTGST and SGST notifications shall be ‘Any Chapter’ of the First Schedule to the CustomsTariff Act, 1975 (51 of 1975) and tax on lottery should be paid accordingly at prescribed rates,12% or 28%, as the case may be.

(Ruchi Bisht)
Under Secretary (TRU)


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