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Notification No. 01/2020 – Integrated Tax (Rate) Explained

by Shakshi Bharti | Mar 3, 2024 | GST, 2020 Notifications, Integrated Tax (Rate) 2020 Notifications, Notifications | 0 comments

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Important Keyword: Lottery GST 28%, Notification 01 2020 IGST rate, GST on lottery India, actionable claim GST rate, lottery tax rate amendment,

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[F.No.354/18/2019-TRU]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)

New Delhi, the 21st February, 2020

Notification No. 01/2020 - Integrated Tax (Rate): Seeks to amend notification No. 1/2017- Integrated Tax (Rate) dated 28.06.2017 so as to notify rate of GST on supply of lottery.

[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.1/2017- Integrated Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 666 (E), dated the 28th June, 2017, namely:-

In the said notification, -

in Schedule II - 12%, S. No. 242 and the entries relating thereto shall be omitted;

in Schedule IV - 28%, for S. No. 228 and the entries relating thereto, the following

S. No. and the entries shall be substituted, namely: -

“228.

Any chapter

Lottery”.

2. This notification shall come into force on the 1^st day of March, 2020.

(Pramod Kumar)
Director to the
Government of India

Note: - The principal notification No.1/2017-Integrated Tax (Rate), dated the 28th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 666(E), dated the 28th June, 2017 and last amended by notification No. 26/2019-Integrated Tax (Rate), dated the 30^th December 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 962(E), dated the 30^th December 2019.

📚 Frequently Asked Questions (FAQs): Notification No. 01/2020 - Integrated Tax (Rate)

Q1: What is Notification No. 01/2020 – Integrated Tax (Rate)?

Answer:
It revises the IGST rate on lottery, making it a uniform 28% across India.
notfctn-01-2020-igst-rate-engli…

Q2: When did the new rate become effective?

Answer:
From 1st March 2020.
notfctn-01-2020-igst-rate-engli…

Q3: Does this apply to online and paper lotteries both?

Answer:
Yes ✔ Any physical/ digital lottery = 28% IGST.

Q4: Who is liable to pay GST on lottery?

Answer:
The lottery distributor / organizing government authority.

Q5: Is ITC allowed on lottery business?

Answer:
No ❌
Lottery is a “Actionable Claim”, ITC normally restricted under Section 17(5) CGST Act.

Q6: Is this rate mandatory for all states?

Answer:
Yes ✔ It is under IGST → applicable pan-India.

Q7: How do sellers value lottery tickets for GST?

Answer:
GST is applied on price notified on the ticket / face value.

Q8: Does the same rate apply for exports of lottery?

Answer:
Export of lottery is not zero-rated, still taxable.

Q9: Does this impact prize payouts?

Answer:
Prize tax (TDS under Income Tax Act) is separate — no change here.

Q10: Any compliance change for retailers?

Answer:
Retailers must ensure correct tax invoice rate & report supplies accurately.
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