Lottery New GST Rate in India: State vs Private
- GST lottery rules in India specify a 40% GST rate on lottery tickets from 22 September 2025 for specified lottery supplies.
- Before this, both state-run and state-authorised private lotteries were uniformly taxed at 28% (a rate that has applied since 1 March 2020).
- The lottery GST rate of 40% applies as per the applicable taxable value provisions for lottery ticket supply.
- Lottery winnings are not subject to GST. Lottery tax on winnings is governed separately under applicable Income Tax provisions, including TDS deduction rules.
- Lottery distributors and operators must follow GST compliance requirements, including applicable invoicing, reporting and record-keeping rules.
- Businesses involved in lottery services should verify applicable GST provisions based on their role in the supply chain.
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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New GST Rate on Lottery Tickets in India
| Type of Lottery | HSN/Category | New GST Rate (After 22 Sep 2025) | Old GST Rate (Before 22 Sep 2025) | Remarks |
|---|---|---|---|---|
| State-run lottery | Lottery tickets | 40% | 28% | Operated by a state government |
| State-authorised private lottery | Lottery tickets | 40% | 28% | Run by private entities but authorised by a state government |
| Lottery tickets supplied through online platforms | Lottery tickets | 40% | 28%* | GST applies as per applicable lottery supply provisions |
Type of Lottery
HSN/Category
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Remarks
Type of Lottery
HSN/Category
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Remarks
Type of Lottery
HSN/Category
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Remarks
Note: GST rates for lottery tickets were revised from 22 September 2025. Both state-run and state-authorised lotteries were uniformly taxed at 28% before this revision. This uniform 28% rate has applied to both categories since 1 March 2020, replacing an earlier 12%/28% split. The revised rate applies uniformly at 40% for applicable lottery supplies.
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GST on Online Lottery
- GST on lottery tickets sold through online platforms is charged at 40% as per the revised GST structure.
- 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 | — |
Winning Amount
Tax Type
Rate
Winning Amount
Tax Type
Rate
Who Pays GST on Lottery?
- Distributors/operators: Collect and pay 40% GST on applicable lottery ticket supplies.
- Retailers: GST registration and compliance requirements depend on their role and applicable provisions.
- Customers: Pay GST as part of the lottery 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.
