Circular No.: 06/06/2017-CGST
Date of Circular: 27th August 2017
Relevant Sections and Rules:
- Central GST Act, 2017:
- Schedule II (classification of supplies)
- Relevant Notifications:
- GST rate notifications under CGST, IGST, UTGST, SGST
- Customs Tariff Act, 1975:
- First Schedule (chapter-wise classification of goods)
Summary of Circular:
This circular addresses confusion regarding the classification and GST rate applicable to lottery tickets. It was reiterated that under the CGST Act, lottery is treated as “goods”. However, issues were raised by stakeholders due to the absence of a specific chapter heading (shown as “-”) in GST rate notifications, which led to difficulties in filing returns and tax payments.
The clarification provided is that the classification for lottery, as per all related GST rate notifications, shall be under “Any Chapter” of the First Schedule to the Customs Tariff Act, 1975, affirming its nature as goods. Therefore, taxpayers must pay GST on lottery tickets based on the applicable prescribed rates—either 12% or 28%, depending on the type of lottery.
This clarification is intended to resolve system-related issues and avoid delays in tax compliance related to lottery transactions.
Source: Circular No.: 06/06/2017-CGST
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