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GST ON WINNING PRIZES VS LOTTERY

05 November 2020

I have read that GST is levied on lottery but not on amount received from winning prizes . For example- if amount is received from shows like Big Boss GST will not be there on it.
Which provision makes this happen?

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8 Replies

Arjun Verma (133 Points)
Replied 05 November 2020

Yes, you are right gst not levied on income earned from big boss or lottery. this income fall under the head income from other sources and will attract flat rate 30%

Harshit Acharya (404 Points)
Replied 05 November 2020

But I have studied that actionable claims have been brought under gst to include lottery . Then why is GST not levied on it.

ayusmita (Tax consultant) (5885 Points)
Replied 05 November 2020

Now a lottery run by state attract 12%gst while a state authorised lottery attract 28%

Arjun Verma (133 Points)
Replied 05 November 2020

Yes lottery ticket is under actionable claim and other actionable claims too but since gst law doesn't define actionable claim separately under this act, the definition for an actionable claim is taken as the transfer of property act... mainly your question is why Gst not levied on it coz there is two face
first if you earned income then you have to pay direct tax, otherwise supply of lottery tickets attract a rate of Gst 28%

ayusmita (Tax consultant) (5885 Points)
Replied 05 November 2020

Gst is indirect tax
but money from kbc or other games show are direct tax so no gst
lottery
attract gst as it served service now as a person takes money too for a lottery tickets

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Harshit Acharya (404 Points)
Replied 06 November 2020

If you are saying when we pay direct tax on any receipt we don't have to pay indirect tax...But , if I have a professional income on which gst is levied and paid by me ...I will also have to pay the direct tax on this sum only ...Whats the difference here and between lottery?