|
Government of India
Ministry of Finance
Department of Revenue
Tax
Research Unit
Circular No.06/06/2017-CGST
New Delhi, the 27th August, 2017
To,
The Principal Chief Commissioner/Chief Commissioners/ Principal
Commissioner/
Commissioner of Central Tax (All) / Director General of Systems
Madam/Sir,
Subject: - Issue related to classification and GST rate on lottery tickets –
regarding
Supply of lottery has been treated as supply of goods under the Central Goods
and Services Tax (CGST) Act, 2017.
2. Accordingly, based on the recommendation of the GST Council, the GST rate
for supply of lottery has been notified under relevant GST rate notification
relating to CGST/IGST/UTGST/SGST. However, entries in the respective
notifications mention classification for lottery as “-”.
3. In this connection, references have been received, inter-alia, stating
that due to discrepancy in code allotted, i.e., lottery is defined as goods but
code allotted for lottery is under services, the assessees are not able to
upload return or deposit tax in time.
4. The matter has been examined. It should be noted that the process of
filing return is linked with rate of tax specified for supply. Further, there is
complete clarity about rate of tax on lotteries. As mentioned above, in GST,
lottery is goods and the classification indicated in relevant notification for
lottery is “-”, which means any chapter.
5. That being so, it is clarified that the classification for lottery in
respective CGST, IGST, UTGST and SGST notifications shall be ‘Any Chapter’ of
the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and tax on
lottery should be paid accordingly at prescribed rates, 12% or 28%, as the case
may be.
Ruchi Bisht)
Under Secretary (TRU)
[F. No. 354/149/2017-TRU]
|