Important Keyword: Notification No. 01/2020 – Union Territory Tax (Rate), GST on lottery, UTGST rate change, GST notification 2020, Lottery GST 28%, GSTR filing for lottery, Finodha GST services,
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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 - Union territory Tax (Rate): Seeks to amend notification No. 1/2017- Union Territory Tax (Rate) dated 28.06.2017 so as to notify rate of GST on supply of lottery.
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, PART II, SECTION 3, SUB-SECTION (i), EXTRAORDINARY]
G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 7 of the UTGST Act, 2017 (14 of 2017) and 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 amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.1/2017-Union territory 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. 710(E), dated the 28th June, 2017, namely:-
In the said notification, -
- in Schedule II - 6%, S. No. 242 and the entries relating thereto shall be omitted;
- in Schedule IV – 14%, 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 1st day of March, 2020.
(Pramod Kumar)
Director to the
Government of India
Note: - The principal notification No.1/2017- Union territory 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. 710(E), dated the 28th June, 2017 and last amended by Notification No. 27/2019- Union territory Tax (Rate) dated 30th December, 2019 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 963 (E), dated the 30th December, 2019.
📚 Frequently Asked Questions (FAQs): Notification No. 01/2020 – Union Territory Tax (Rate)
Q1: What is Notification No. 01/2020 – Union Territory Tax (Rate)?
Answer:
It changes the GST rate on all types of lotteries under UTGST to 14%, effective 01.03.2020. Earlier multiple rates existed.
Q2: Why was this amendment made?
Answer:
To remove classification disputes like:
State-run lotteries vs. State-authorised lotteries
And bring uniform GST tax governance as per recommendations of GST Council.
Q3: What is the total GST on a lottery now?
Answer:
📌 Total GST = 28%
(14% CGST + 14% UTGST)
Q4: Who must comply with this Notification?
Answer:
✔ Lottery distributors
✔ Stockists
✔ Authorized government agents
✔ Retail sellers earning commission
present in Union Territories like Chandigarh, Daman & Diu, Lakshadweep, etc.
Q5: Are both paper lotteries and online lotteries covered?
Answer:
Yes. “Any chapter: Lottery” applies universally per schedule substitution. notfctn-01-2020-utgst-rate-engl…
Q6: What GST return must a lottery distributor file?
Answer:
Monthly filing using GSTR-3B + GSTR-1.
👉 File easily here: https://finodha.in/gst-return-filing/
Q7: Will ITC be allowed on lottery business?
Answer:
Yes, but only as permitted under CGST Sec. 17 for taxable outward supplies.
Q8: What if a dealer fails to update GST rate in invoice?
Answer:
It can lead to demand, penalty & interest under Sec 73/74 of CGST Act.
Q9: Does face value include GST?
Answer:
Mostly exclusive. Tax must be shown separately in invoices to avoid disputes.
Q10: What documentation is needed to prove compliance?
Answer:
✔ GST Tax Invoice
✔ Purchase/stock records
✔ Lottery authorization agreements
✔ GSTR filings proof
Need support? → https://finodha.in/gst-compliance/
Q11: When did the amendment come into effect?
Answer:
From 1st March 2020. notfctn-01-2020-utgst-rate-engl…
Q12: Does this affect inter-state supply?
Answer:
Yes — IGST @28% for supply between UT and State.
Q13: Do foreign participants in Indian lotteries fall under this?
Answer:
If supply is in India, GST applies irrespective of the buyer’s nationality.
Q14: Which notification was amended?
Answer:
Notification 1/2017-UTGST (Rate) dated 28.06.2017. notfctn-01-2020-utgst-rate-engl…
Q15: Where to get expert help for GST setup in lottery business?
Answer:
👉 https://finodha.in/online-gst-registration/
👉 https://finodha.in/setup-business/
Expert guidance ensures 100% compliance and risk-free documentation.
Download PDF: Notification No. 01/2020 - Union Territory Tax (Rate)
More Information: https://taxinformation.cbic.gov.in/
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