CGST Rule 31A – Value of supply in case of lottery, betting, gambling and horse racing [Updated 2019]

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

Rule 31A (1)

[1][Notwithstanding anything contained in the provisions of this Chapter, the value in respect of supplies specified below shall be determined in the manner provided hereinafter.

Rule 31A (2)

(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.

Explanation: For the purposes of this sub-rule, the expressions-

  1. “lottery run by State Governments” means a lottery not allowed to be sold in any Stateother than the organizing State;
  2. “lottery authorised by State Governments” means a lottery which is authorised to be soldin State(s) other than the organising State also; and
  3. “Organising State” has the same meaning as assigned to it in clause (f) of
    sub-rule (1) of rule 2 of the Lotteries (Regulation) Rules, 2010.

Rule 31A (3)

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.]


[1] Inserted by the Central Goods and Services Tax (Amendment) Rules, 2018 w.e.f. 23.01.2018 – Date of Amendment : 23-01-2018, Effective from : 23-01-2018, Retrospective Effect : No

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