--- title: "Lottery New GST Rate 2026: 40% Rate on Lottery Tickets & Winnings" description: "New GST rate on lottery in 2026 is 40% on all lottery tickets and winnings in India. Stay GST-compliant with Busy and apply the correct rate automatically." canonical: "https://busy.in/gst-rates/lottery/" author: "Susheel Kumar" published: "2025-05-19T11:10:41.000Z" category: "GST Rates" --- - The GST rate on lottery tickets in India increased from **28% to 40%** for both state-run and authorised private lotteries from 22 September 2025. - The **40% GST** applies as per the applicable taxable value provisions for lottery ticket supply. - Lottery winnings are not subject to GST. Tax on lottery winnings is governed separately under applicable Income Tax provisions. - Lottery distributors and operators must comply with GST collection, payment, and reporting requirements, while retailers may need GST registration depending on applicable provisions. - Businesses dealing in lottery services must follow applicable GST invoicing, return filing, and record-keeping requirements. # Lottery New 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. ## New GST Rate on Lottery Tickets in India | Type of Lottery | GST Rate | Remarks | | --- | --- | --- | | State-run lottery | 40% | Operated by a state government | | Private lottery authorized by state | 40% | Run by private entities but approved by states | | Online lottery tickets | 40% | GST on full face value, not just commission | ## Old GST Rate on Lottery Tickets in India ### (Old GST Rates – Applicable Until 21st September) | 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 | **Get a Free Demo –** [**Best Billing and Invoicing Software**](https://busy.in/accounting-software/invoicing-and-gst-billing/) Live Demo Available Today ## Record Every Lottery Transaction in Today's Day Book Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ### **GST on Online Lottery** - Platforms must charge **40% GST** on online lottery ticket sales. - GST applies to the applicable taxable value provisions for lottery tickets, not just service fees. - Online portals and mobile apps dealing in lottery services must comply with GST registration and reporting requirements. - Regular GST return filing is mandatory for compliance. ### **GST on Lottery Winnings in India** GST is **not applicable** to lottery winnings. Tax on lottery winnings is governed separately under Income Tax provisions, where applicable TDS is deducted as per the Income Tax Act. | Winning Amount | Tax Type | Rate | | --- | --- | --- | | Lottery prize (any amount) | **Income Tax TDS** | As per applicable Income Tax provisions | | 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. ## About the author **Susheel Kumar** 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 ### What is the current lottery GST rate in India? The GST rate is **40%** on lottery tickets, including both state-run lotteries and private lotteries authorised by states. ### Does GST apply to online lotteries too? Yes, GST applies to online lottery tickets. The applicable GST rate is **40%**, and it applies to online lottery ticket sales as per the applicable GST provisions. ### 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? The GST rate on state-run lottery tickets is **40%**. The same rate applies to state-authorised private lotteries from 22 September 2025. ### 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. ## Related articles - [New GST on Skincare Products: Rate, Branding & Retail Pricing](https://busy.in/gst-rates/skincare-products/) - [New GST on Industrial Machinery: Slabs, ITC & MSME Effect](https://busy.in/gst-rates/industrial-machinery/) - [New GST on Restaurant Meals: Dine-in, Takeaway & Delivery Compared](https://busy.in/gst-rates/restaurant-meals/) - [New GST on Kitchen Utensils: What’s Taxed and What’s Not?](https://busy.in/gst-rates/kitchen-utensils/) - [New GST on Online Education: Rate, Exemptions & EdTech Impact](https://busy.in/gst-rates/online-education/) - [New GST on Packaging Materials: Tax Implication Across Industries](https://busy.in/gst-rates/packaging-materials/) - [New GST on Digital Marketing Services: Tax Rates & Input Credit Explained](https://busy.in/gst-rates/digital-marketing-services/) - [New GST on Pesticides: Rates, Agri-Exemptions & Sector Impact](https://busy.in/gst-rates/pesticides/) - [New GST on Butter: From Dairy to Dining – What You Pay](https://busy.in/gst-rates/butter/) - [GST on Honey: Rate, Applicability & Industry Outlook](https://busy.in/gst-rates/honey/)