Query regarding gst on lottery

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Yogesh Ozha (Querist)
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23 June 2017 Hello Sir / Madam,

In the recent meeting of GST Council, a point has been mentioned that “State-run lotteries will be taxed at 12% of the face value of lottery tickets”.

Till now, in Maharashtra, lotteries had single point tax system where Lottery Tax was paid by 1st seller in the state. There was no VAT or Service Tax. Only Lottery Tax was applicable which was paid by the first seller. Rest of the chain (Dealers, Agents, Sub-agents etc.) were not required to pay any Lottery Tax and were also not required to get registered under VAT and Service Tax.

My query is that what will be the position of rest of the chain under GST? Are they required to get registered under GST? Is there going to be single point tax system in GST also, or even these dealers are required to pay GST?

Devansh Jain

Devansh Jain (Expert)
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23 June 2017 The rate of GST of 12% is for service of "supply of lottery". It seems that the supplier paying GST will have to get registered under GST for payment of tax. As far as single point taxation asked by you is concerned, there is not much clarity in the law currently. Further notification in my view might be issued by govt. In my opinion GST would be applicable at every level of supply of the service...

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Yogesh Ozha

Yogesh Ozha (Querist)
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23 June 2017 Thanks for the reply Sir

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Devansh Jain

Devansh Jain (Expert)
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23 June 2017 Your welcome Yogesh

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