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 27^th August ,2017

To,

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

Madam/Sir,

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 and  Services Tax (CGST) Act , 2017.

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

3. In this connection, references have  been received, inter -alia, stating that due to discrepancy in code allotted, i.e., lottery is  defined as goods but code allotted for lottery is under  services,  the assesses  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 is  linked with rate of tax specified for supply  . Further, there is complete clarity about rate of tax on  lotteries. As mentioned above, in GST,lottery is goods and the classification  indicated in  relevant 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 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.  

(Ruchi Bisht)

Under  Secretary (TRU)