Lottery GST Rate in India: State vs Private
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.
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GST Rate on Lottery Tickets in India
| 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 on Online Lottery
- Platforms must charge 28% GST on ticket sales
- GST applies to the entire face value, not just service fees
- Online portals and mobile apps must register under GST
- Regular return filing is mandatory for compliance
GST on Lottery Winnings in India
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 | – |
Who Pays GST on Lottery?
- Distributors/operators: Collect and pay 28% GST on face value
- Retailers: May need GST registration if earning commissions
- Customers: Pay GST as part of ticket price
GST Compliance for Lottery Sellers
- Mandatory GST registration (no threshold exemption)
- Apply HSN Code 9996 (Recreational and Cultural Services)
- File monthly returns with ticket sales and tax collected
- Maintain transaction logs and distribution records
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.
I am a Chartered Accountant with over 20 years of experience and a finance content writer. I focus on educating people about finance and taxation. I have written many blog posts on finance, taxation, trading, and investment on the BUSY website. My goal is to increase financial understanding by making complex concepts easier to grasp and to support educational programs in India.
Frequently Asked Questions (FAQs)
- What is the current lottery GST rate in India?The GST rate is 28% on all types of lottery tickets, including both state-run and private lotteries.
- Does GST apply to online lotteries too?Yes, GST on online lottery is also 28%, and applies to digital ticket sales and draws.
- Is there GST on lottery winnings?No. GST is not charged on winnings. Instead, TDS at 30% is deducted as per income tax rules.
- What is the GST on lottery tickets issued by the state government?It’s 28%, regardless of whether it’s a state-run or state-authorized private draw.
- Do retailers selling lottery tickets need GST registration?Yes, if they earn commission or if their annual turnover exceeds the GST threshold, they must register and comply.
