In response to the recommendation of GST council in its 38th meet, where it had decided to levy a single rate of GST @ 28% on both State run and State authorized lottery, following notification on 21st February 2020 has been issued.
Notification No. 1/2020-Central Tax (Rate)
Lottery run by State Governments which was earlier in the 12% rate schedule is now omitted from that schedule. Further in schedule of 28% rate, where earlier only Lottery authorized by State Governments were covered.
Now, under the 28% rate schedule, both of them would be covered.
Value of supply of lottery under sub-section (5) of section 15 of the Central Goods and Services Tax Act, 2017 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 organizing State, whichever is higher.