Provisions under Rule 31A of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Value of supply in case of lottery, betting, gambling and horse racing”, are as under:
CGST Rule 31A: Value of supply in case of lottery, betting, gambling and horse racing (Chapter-IV: Determination of Value of Supply)
(1) Notwithstanding anything contained in the provisions of this Chapter, the value in respect of supplies specified below shall be determined in the manner provided hereinafter.
(2) (a) The value of supply of lottery run by State Governments shall be deemed to be 100/112 of the face value of ticket or of the price as notified in the Official Gazette by the organising State, whichever is higher.
(b) The value of supply of lottery authorised by State Governments 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 organising State, whichever is higher.
Explanation:– For the purposes of this sub-rule, the expressions- (a) “lottery run by State Governments” means a lottery not allowed to be sold in any State other than the organizing State; (b) “lottery authorised by State Governments” means a lottery which is authorised to be sold in State(s) other than the organising State also; and (c) “Organising 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.
(3) The value of supply of actionable claim in the form of chance to win in betting, gambling or horse racing in a race club shall be 100% of the face value of the bet or the amount paid into the totalisator.
1. CGST Rule 31A inserted vide Notification No. 3/2018 Central Tax dt. 23 Jan. 2018.
It may be noted that the above information is based on Updated CGST Rules 2017 (amended upto 18 July 2019), as compiled/ shared by CBIC (i.e. as notified/ amended upto 18 July 2019 by the CBIC). However, for detailed/ official information and/or subsequent updates, please refer relevant Notifications. E&OE
Further, it may be noted that Rules 27 to 138 (pertaining to various Chapters) of the Central Goods and Services Tax (CGST) Rules, 2017 were initially notified by CBIC (CBEC) vide CGST (2nd Amendment) Rules, 2017 Notification No. 10/2017 Central Tax dt. 28 June 2017, applicable w.e.f. 1 July 2017 (or as may be specified in respective Rules).
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