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

Raju Choudhary

Administrator
Staff member
#1
Value of supply in case of lottery, betting, gambling and horse racing. A specific valuation rule for these kinds of transactions has been inserted vide Notification no. 3/2018- Central Tax dated 23rd January 2018. The summary of this valuation rule has been given below:

Lottery – There can be two types of lotteries – a) lottery run by State Government and b) lottery authorised by State Government

  • (a) Lottery run by State Government – This means a lottery not allowed to be sold in any state other than the organizing state. Value in this case will be 100/112 of the face value of ticket or of the price as notified in the Official Gazette by the organizing state whichever is higher
  • (b) Lottery authorized by State Government – This refers to a lottery which is authorized to be sold in state other than the organizing state also. Value in this case will 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
Betting, gambling or horse racing – The value of supply of actionable claim in the form of chance to win in betting, gambling or horse racing in a race club will be 100% of the face value of the bet or the amount paid into the totalisator.
 
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