Important Keyword: F. No. 354/149/2017-TRU, Circular No. 06/06/2017-CGST,
F. No. 354/149/2017-TRU
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
*****
New Delhi, the 27th August, 2017
Circular No. 06/06/2017 – CGST
Table of Contents
To,
The Principal Chief Commissioner/Chief Commissioners/ Principal Commissioner/ Commissioner of Central Tax (All) / Director General of Systems
Madam/Sir,
Subject: – Issue related to classification and GST rate on lottery tickets – regarding
Supply of lottery has been treated as supply of goods under the Central Goods and Services Tax Act, 2017.
2. Accordingly, based on the recommendation of the GST Council, the Goods and Services Tax rate for supply of lottery has been notified under relevant Goods and Services Tax rate notification relating to Central Goods and Services Tax, Integrated Goods and Services Tax, Union Territory Goods and Services Tax and State Goods and Services Tax. However, entries in the respective notifications mention classification for lottery as “-”.
3. In this connection, references have been received, 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 assesses are not able to upload return or deposit tax in time.
4. The matter has been examined. It should be 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 Goods and Services Tax, lottery is goods and the classification indicated in relevant notification for lottery is “-”, which means any chapter.
5.That being so, it is clarified that the classification for lottery in respective Central Goods and Services Tax, Integrated Goods and Services Tax, Union Territory Goods and Services Tax and State Goods and Services Tax notifications 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.
(Ruchi Bisht)
Under Secretary (TRU)
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