SKILL LOTTO SOLUTIONS PVT. LTD. Vs UNION OF INDIA & ORS. …RESPONDENTS
Date of Judgement-03rd December,2020
Supreme Court of India
Sub-Whether lottery, betting and gambling are liable to GST?

The Apex court today in a landmark judgement clarified in detail the definition of goods and actionable claims under the GST Act and held that the inclusion of actionable claim in definition “goods” as given in Section 2(52) of Central Goods and Services Tax Act, 2017 is not contrary to the legal meaning of goods and is neither illegal nor unconstitutional. Further the court held that Lottery, betting and gambling are well known concepts and have been in practice in this country since before independence and were regulated and taxed by different legislations. When Act, 2017 defines the goods to include actionable claims and included only three categories of actionable claims, i.e., lottery, betting and gambling for purposes of levy of GST, it cannot be said that there was no rationale for including these three actionable claims for tax purposes. Regulation including taxation in one or other form on the activities namely lottery, betting and gambling has been in existence since last several decades. The court also held that while determining the taxable value of supply the prize money is not to be excluded for the purpose of levy of GST

A landmark decision on GST and Lottery

Ramesh Patodia
03-12-2020