This circular provides clarification on the classification and applicable GST rate on lottery tickets to address difficulties faced by taxpayers in return filing and tax payment.

It clarifies that lottery is treated as a supply of goods under the CGST Act, 2017. Based on the recommendations of the GST Council, specific GST rates have been notified for lottery under the relevant CGST, IGST, SGST and UTGST rate notifications. However, since the classification column in these notifications mentions a dash (“–”), doubts arose regarding the correct tariff classification, leading to technical issues in uploading returns and depositing tax.

The circular clarifies that the dash (“–”) in the classification column signifies “any chapter” of the First Schedule to the Customs Tariff Act, 1975. Accordingly, lottery should be classified under any chapter, and GST should be paid at the prescribed rates of 12% or 28%, as applicable.

This clarification ensures uniform classification of lottery under GST and removes procedural difficulties in compliance arising from ambiguity in tariff coding.