GST

Value of supply in case of lottery, betting, gambling and horse racing-New CGST Rule 31A

Government has amended the Central Goods and Services Tax Rules, 2017 by the Central Goods and Services Tax (Amendment) Rules, 2018 by Notification No. 3/2018-Central Tax dated 23rd January, 2018.

A new Rule 31A has been inserted for determination of value of supply in case of lottery, betting, gambling and horse racing.

Value of supply in case of lottery, betting, gambling and horse racing.

As per the newly inserted rule, the value in respect of supplies specified below shall be determined in the manner provided hereinafter:

(a) The value of supply of lottery run by State Governments shall be deemed to be 100/112 of the face value of ticket or of the price as notified in the Official Gazette by the organising State, whichever is higher.

(b) The value of supply of lottery authorised by State Governments shall be deemed to be 100/128 of the face value of ticket or of the price as notified in the Official Gazette by the organising State, whichever is higher.

The value of supply of actionable claim in the form of chance to win in betting, gambling or horse racing in a race club shall be 100% of the face value of the bet or the amount paid into the totalisator

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