Rules Rule 31A of CGST Rules 2017 i.e. Value of supply in case of lottery, betting, gambling and horse racing


Financial Year: 2017


Rule 31A of CGST Rules

 

Value of supply in case of lottery, betting, gambling and horse racing

 

 

(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.

 

(Sub Rule 2 has been redrafted by Notification No 08/2020 Central Tax i.e. CGST 2nd Amendment Rules 2020)

(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 Organising State,

whichever is higher.

 

Explanation:–

 

For the purposes of this sub-rule, the expression:-

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.

 

 

Thanks

CA Rahul Gupta