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 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.
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 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 | — |
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.
