Lottery New GST Rate in India: State vs Private
- The GST rate on lottery tickets in India increased from 28% to 40% for both state-run and private lotteries authorized by states.
- The 40% GST applies to the full face value of online lottery tickets, not just the commission.
- Lottery winnings are not subject to GST but are taxed at a 40% flat rate under Income Tax TDS.
- Lottery distributors and operators must collect and pay GST, while retailers may need GST registration if earning commissions.
- Sellers must register for GST, use HSN Code 9996, file monthly returns, and maintain transaction records for compliance.
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 | 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 |
Type of Lottery
GST Rate
Remarks
Type of Lottery
GST Rate
Remarks
Type of Lottery
GST Rate
Remarks
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 |
Type of Lottery
GST Rate
Remarks
Type of Lottery
GST Rate
Remarks
Type of Lottery
GST Rate
Remarks
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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 | 40% flat |
| 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 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.
