GST on Sale of Lottery Tickets

In this article we will discuss, whether lottery sale is subject to GST or Not?


To levy GST, there must be a good or service and there shall be a transfer of property in case of good.


There is a contradictory view that, ticket holder has a contingent interest in the prize money, but does not get any benefit for such lottery purchase in return. The sale of the lottery ticket is thus a sale of chance and Consideration is paid for the chance to win.


The sale of a lottery ticket, therefore, not a transfer of any ‘goods’ or even beneficial interest in a movable property. Therefore, the person who sells the lottery ticket is not selling any ‘goods’ nor is the purchaser buying any ‘goods’.

The Calcutta High Court has upheld the constitutional validity of bringing lotteries under the purview of Goods and Services Tax ( GST ) and held that a lottery can be treated as ‘goods’.


As per Supply definition under GST, supply does not include "actionable claim other than the lottery, betting and gambling". Since lotteries are generally speaking ‘goods’ and come within the definition of ‘actionable claims’, and since lotteries are out of the purview of ‘actionable claims’ which do not attract the GST, the lottery can, therefore, be charged to tax GST.


Conclusion: Thus by above discussion, we can conclude that Lotteries are subject to GST on its sale.

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