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GST on supply of lottery tickets
1 What is a lottery ticket?
'Lottery tickets', is an actionable claim and is classified as 'Goods', under GST. The definition of the Actionable claim as per Section 3 of the Transfer of Property Act 1882, is as follow:
“Actionable claim” means a claim to any debt, other than a debt secured by mortgage of immovable property or by hypothecation or pledge of moveable property, or to any beneficial interest in moveable property not in the possession, either actual or constructive, of the claimant, which the Civil Courts recognise as affording grounds for relief, whether such debt or beneficial interest be existent, accruing, conditional or contingent.
There are two types of lottery tickets. One is “Lottery run by state government” and the second is “Lottery authorized by state government. Before Notification No. 01/2020 Dt. 21.02.2020 of Central Tax (Rate), the rate of GST on both was different. Lottery run by state government was charged under the rate of 12% and Lottery authorized by state government was charged under the rate of 28%. But after this notification there is only one rate for both which is 28%.
"Lottery run by State Government" is always an intra-state supply. The place of supply will always be the State which runs the lottery game. This is because such a lottery scheme is always conducted within the State. Lottery authorised by the State Government" but conducted by agencies can be an inter-state or intra-state supply.
Invoicing of Sale of Lottery:-
Supply of Lottery Tickets is covered under the Tax Invoice as per Sec 31 of CGST Act, 2017 and contained all the requirement as mentioned under Rule 46. There is no relaxation in invoicing requirements for a supplier of lottery tickets.
Time of Supply of Lottery Tickets:-
1) Date of issue of invoice or last date when the supplier is required to issue an invoice.
2) Date on which supplier receives the payment for supply. Whichever is Earlier. When a person pays the amount to participate in a lottery or to buy the lottery ticket, the amount of money paid to participate is treated as payment for supply.
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