BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
Lotteries are a popular form of gaming in India, operated both by state governments and private distributors. But how does GST apply to lottery sales and winnings? Whether you’re buying a scratch card or participating in an online draw, it’s important to understand the lottery GST rate and how it varies between state-authorized and private lotteries.
| Type of Lottery | GST Rate | Remarks |
|---|---|---|
| State-run lottery | 28% | Operated by a state government |
| Private lottery authorized by state | 28% | Run by private entities but approved by states |
| Online lottery tickets | 28% | GST on full face value, not just commission |
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GST is not applicable to lottery winnings. Instead, TDS under Income Tax is deducted at a flat rate:
| Winning Amount | Tax Type | Rate |
|---|---|---|
| Lottery prize (any amount) | Income Tax TDS | 30% flat |
| GST on prize amount | Not applicable | – |
Understanding the lottery GST rate is important for distributors, platforms, and buyers to ensure tax compliance and avoid penalties. Whether you’re selling tickets or playing online, GST is an unavoidable part of the lottery system in India.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.