Rule 31A of CGST Rules 2017: Value of supply in case of lottery, betting, gambling and horse racing

Provisions under Rule 31A of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Value of supply in case of lottery, betting, gambling and horse racing”, are as under:

CGST Rule 31A: Value of supply in case of lottery, betting, gambling and horse racing (Chapter-IV: Determination of Value of Supply) 

(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.

(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-

(a) “lottery run by State Governments” means a lottery not allowed to be sold in any State other than the organizing State;

(b) “lottery authorised by State Governments” means a lottery which is authorised to be sold in State(s) other than the organising State also; and

(c) “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.

(2) The value of supply of lottery 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 expression “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.

(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.

Amendments History:

1. CGST Rule 31A inserted vide Central Tax Notification 3/2018 dt. 23/01/2018.

2. Sub-rule (2) substituted w.e.f. 01/03/2020, vide Central Tax Notification 8/2020 dt. 02/03/2020.

—–

Note: The CGST Rules 2017 along with the prescribed Forms were initially notified vide Central Tax Notifications 3/2017 dt. 19/06/2017 (Rule 1 to 26), 10/2017 dt. 28/06/2017 (Rules 27 to 138) and 15/2017 dt. 01/07/2017 (Rules 139 to 162). These Rules/ Forms were subsequently amended by CBIC through various Notifications issued from time to time. Information on this page is a Rule-wise compilation of Amendments made by all such Notifications upto 29/12/2021, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.

CBIC Updates (GST)
GST Circulars, Notifications, Press Releases, Orders, etc. issued by the Central Board of Indirect Taxes & Customs (CBIC) in different years, along with Section-wise/ Rule-wise Text of GST Acts/ Rules:
CGST: CGST Act/ Definitions, CGST Rules, GST Forms
IGST: IGST Act/ Definitions, IGST Rules
UTGST: UTGST Act/ Definitions, UTGST Rules
CBIC Circulars (CGST/ IGST/ UTGST): 2021, 2020, 2019, 2018, 2017
CBIC GST Instructions: 2022, 2021, 2020, 2019, 2018, 2017
CBIC CGST Notifications: 2022, 2021, 2020, 2019, 2018, 2017
CBIC CGST Rate Notifications: 2021, 2020, 2019, 2018, 2017
CBIC IGST Notifications: 2022, 2021, 2020, 2019, 2018, 2017
CBIC IGST Rate Notifications: 2020, 2019, 2018, 2017
CBIC UT Tax/ UTGST Notifications: 2022, 2021, 2020, 2019, 2018, 2017
CBIC UT Tax/ UTGST Rate Notifications: 2020, 2019, 2018, 2017
CBIC Compensation Cess Notifications: 2022, 2021, 2020, 2019, 2018, 2017
CBIC Compensation Cess Rate Notifications: 2022, 2021, 2020, 2019, 2018, 2017
CBIC Orders (CGST/ IGST/ UTGST): 2020, 2019, 2018, 2017
CBIC Press Releases: 2020, 2019, 2018, 2017
Note: For Official/ updated copy, please visit the CBIC website.

Leave a Reply