Notification No.: 08/2020 – Central Tax
Date of Notification: 2nd March 2020
Relevant Sections and Rules:
- Central GST Act, 2017:
- Section 164 – Power to make rules
- CGST Rules, 2017 Amended:
- Rule 31A(2) – Valuation of supply in case of lottery
Summary of Notification
Revised Valuation Rule for Supply of Lottery (Effective from 1st March 2020):
The Central Government, based on GST Council recommendations, has substituted sub-rule (2) of Rule 31A to provide a revised valuation method for lottery supplies:
✅ New Valuation Formula:
The value of supply of lottery shall be deemed to be 100/128 of the face value of the ticket or of the price as notified by the Organising State, whichever is higher.
📌 Explanation Added:
The term “Organising State” shall have the meaning assigned to it in Rule 2(1)(f) of the Lotteries (Regulation) Rules, 2010.
This amendment effectively prescribes a standard valuation mechanism for lottery tickets, applicable uniformly regardless of who is supplying or organizing the lottery.
