Issue related to classification and GST rate on lottery tickets. - GST - States - 04/2017-GST

GOVERNMENT OF ASSAM ORDERS BY THE COMMISSIONER OF STATE TAX, ASSAM KAR BHAWAN, DISPUR, GUWAHAT1-6 CIRCULAR No. 04/2017-GST Dated Dispur, the 28th August, 2017. Subject: - Issue related to classification and GST rate on lottery tickets - regarding No. CT/GST-10/2017/197.- Supply of lottery has been treated as supply of goods under the Assam Goods and Services Tax Act, 2017. Accordingly, based on the recommendation of the GST Council, the GST rate for supply of lottery has been notified under relevant GST rate notification relating to SGST/CGST/IGST. However, entries in the respective notifications mention classification for lottery as - . In this connection, references have been received by the Tax Research Unit, Department of Revenue, Government of India, inter-alia, stating that due to discrepancy in code allotted, i.e., lottery is defined as goods but code allotted for lottery is under services, the assessees are not able to upload return or deposit tax in time. The matter was examined by Department of Revenue, Government of India. They noted that the process of filing return is linked with rate of tax specified for supply. Further, there is complete clarity about rate of tax on lotteries. As mentioned above, in GST, lottery is goods and the classification indicated in relevant notification for lottery is which means any chapter. That being so, it is clarified that the classification for lottery in Assam Goods and Services Tax Act, 2017, notification shall be 'Any Chapter' of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and tax on lottery should be paid accordingly at prescribed rates, 12% or 28%, as the case may be. This Circular is clarificatory in nature and not meant for any interpretation of provisions of the Act and rules. Sd/- Anurag Goel, Commissioner of State tax, Assam, Dispur, Guwahati Memo No. CT/GST-10/2017/197-A Dated Dispur, the 28th August, 2017