Rule 31A of CGST Rules 2017 : Value of Supply in case of Lottery, Betting, Gambling and Horse Racing.

Home   /   Rule 31A of CGST Rules 2017 : Value of Supply in case of Lottery, Betting, Gambling and Horse Racing.

Notwithstanding anything contained in the provisions of this Chapter. the value in respect of supplies specified below shall be determined in the manner provided hereinafter –

(A) Value of Supply in case of Lottery [Rule 31A(2)]

(i) Value of Supply of Lottery run by State Governments [Rule 31A(2)(a)]

It shall be deemed to be –

(a) 100/112 of the face value of Ticket; or

(b) the price as notified in the Official Gazette by the organizing State,

Whichever is higher.

(ii) Value of Supply of Lottery authorized by State Governments [Rule 31A(2)(b)]

It shall be deemed to be –

(a) 100/128 of the face value of ticket; or

(b) the price as notified in the Official Gazette by the organizing State.

Whichever is higher.

Explanation:—
(a) “lottery run by State Governments” means a lottery not allowed to be sold in any State other than the organizing State;(b) ‘lottery authorized by State Governments” means a lottery which is authorized to be sold in State(s) other than the organizing State also;

Example
Suppose. the face value of the ticket is Rs 100. The value of the ticket for the purpose of levy of GST shall be –

(A) Where the lottery is run by a State Government –

(a)        Rs 100 x 100/112=Rs. 89.29 ; or

(b)       The price as notified in the Official Gazette by the organising State

Whichever is higher

(B) Where the lottery is authorized by State Governments –

(a) Rs 100 x 100/128 = Rs. 78.13 ; or

(b) The price as notified in the Official Gazette by the organizing State

Whichever is higher

In other words, the face value of the ticket is inclusive of GST.

Further, for computing the value of the lottery ticket, the rate of GST shall be 12% , in case the lottery is run by a State Government and it shall be 28% , if the lottery is authorized by the State Government.

(B)    Value of Supply of Actionable Claim in the form of change to win in Betting, Gambling, or Horse Racing in a Race Club [Rule 31A(3)]

Is shall be 100% of the Face Value of the Bet or the amount paid into the totalizator.

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