Important Keyword: Notification No. 08/2020 Central Tax, GST lottery value rule, Rule 31A amendment, GST on lotteries, lottery valuation formula GST, CGST rule amendment 2020, 100/128 lottery valuation GST
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[F. No. 20/06/03/2020 – GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 2nd March, 2020
Notification No. 08/2020 – Central Tax: Seeks to "Amend the CGST Rules, 2017 to prescribe the value of Lottery".
GST: [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
G.S.R……(E). - In exercise of the powers conferred by section 164 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 rules further to amend the Central Goods and Services Tax Rules, 2017, namely:-
1. (a) These rules may be called the Central Goods and Services Tax (Second Amendment) Rules, 2020.
(b). Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette.
2. In the Central Goods and Services Tax Rules, 2017, with effect from the 1st March, 2020, in rule 31A, for sub-rule (2), the following sub-rule shall be substituted, namely: -
“(2) The value of supply of lottery shall be deemed to be 100/128 of the face value of ticket or of the price as notified in the Official Gazette by the Organizing State, whichever is higher.
Explanation: – For the purposes of this sub-rule, the expression “Organizing State” has the same meaning as assigned to it in clause (f) of sub-rule (1) of rule 2 of the Lotteries (Regulation) Rules, 2010.”.
(Pramod Kumar)
Director,
Government of India
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 3/2017-Central Tax, dated the 19th June, 2017, vide number G.S.R. 610 (E), dated the 19th June, 2017 and last amended vide notification No. 02/2020 - Central Tax, dated the 01st January, 2020, published vide number G.S.R. 4 (E), dated the 01st January, 2020.
📚 Frequently Asked Questions (FAQs): Notification No. 08/2020 – Central Tax
Q1: What is Notification No. 08/2020 – Central Tax?
Answer:
It is a GST notification amending Rule 31A(2) to prescribe a uniform valuation method for lotteries. The value is deemed as 100/128 of the face value or notified price, whichever is higher.
Q2: Why was Rule 31A amended?
Answer:
To create transparency and uniformity in lottery valuation, prevent under-invoicing, and simplify GST compliance for both distributors and states.
Q3: What is the new formula for valuing a lottery ticket?
Answer:
Value = 100/128 × (Higher of face value or Organising State notified price).
Q4: How does this impact GST calculation?
Answer:
GST (usually 28%) will now be applied on the deemed value, not on selling price, ensuring fixed valuation.
Q5: Does the amendment affect online lotteries also?
Answer:
Yes, Rule 31A applies to all kinds of lotteries unless exempted specifically.
Q6: What is meant by “Face Value” of lottery?
Answer:
The printed price on the lottery ticket set by the state or organizing authority.
Q7: Who is the “Organising State”?
Answer:
The state that organizes or conducts the lottery as defined under the Lotteries (Regulation) Rules, 2010.
Q8: If the face value is lower but state-notified price is higher, which value is used?
Answer:
The higher value is always used as per the notification.
Q9: Does this apply to private lotteries?
Answer:
Private lotteries are prohibited. Only state-run lotteries are allowed and therefore covered.
Q10: What GST rate applies to lotteries?
Answer:
Generally, 28% GST applies to state-run lotteries (subject to amendments).
Q11: Does this notification change GST return filing for lotteries?
Answer:
No.
Distributors still file:
GSTR-1
GSTR-3B
Ensure correct taxable value using the new formula.
👉 https://finodha.in/gst-return-filing/
Q12: Are lottery distributors required to update invoice formats?
Answer:
Yes.
Invoices must reflect the deemed value of supply as per Rule 31A.
Q13: What if a distributor sells the ticket at a discount?
Answer:
GST is still calculated on 100/128 value—discounts do not affect valuation.
Q14: Is this rule applicable to B2C and B2B supplies?
Answer:
Yes.
All lottery supplies must use the same valuation method.
Q15: Does the amendment reduce compliance burden?
Answer:
Yes.
It removes ambiguity and standardizes valuation across states, making returns easier.
Need assistance?
👉 https://finodha.in/gst-compliance/
✔️ Conclusion
Notification No. 08/2020 – Central Tax brings much-needed clarity to GST valuation of lotteries by mandating a uniform 100/128 valuation method. Whether you’re a state government, lottery distributor, or retailer, knowing this rule ensures proper GST payment, avoids notices, and simplifies return filing.
If you want help with GST calculation, invoicing, or return filing:
👉 Consult Finodha GST Experts Today: https://finodha.in/gst-compliance/
Download PDF: Notification No. 08/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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