Lottery to be taken as ‘goods’ for the purposes of GST: Supreme Court of India


In a matter decided by the three judge bench comprising of Justice Ashok Bhushan, Justice R.Subhash Reddy, and Justice M.R. Shah, it was decided that lotteries shall be classified as ‘goods’ for the purposes of GST.

The petitioner, Skill Lotto Solutions Ltd., which is an authorized and licensed lottery dealer in State of Punjab, challenged the notifications of Central Govt. levying taxes on prize money of lottery tickets.

The govt. sought to impose Goods and Services Tax on the prizes of lottery and gambling under the Central Goods and Services Tax Act, 2017.s

The petitioner contended that the govt. has wrongly classified lottery as ‘goods’ while it is ‘actionable claim’, according to the petitioner.

However, the three judge bench disagreed with the petitioner and held that ‘taxable value of supply the prize money is not to be excluded for the purpose of levy of GST’.

However, the court granted the relief to the petitioner by setting him at liberty to challenge the rate at which the GST should be imposed.