GST is leviable on Lottery & gambling: SC

Skill Lotto Solutions Pvt. Ltd. v. Union of India & Ors. (Supreme Court)

The Hon’ble Supreme Court in Skill Lotto Solutions Pvt. Ltd. v. Union of India & Ors. [W.P. (C) No. 961 of 2018 dated December 3, 2020] held that lottery and gambling under GST’s ambit is legally valid, upholding validity of tax imposition on lottery tickets and the prize money.

Facts:

Skill Lotto Solutions Pvt. Ltd. (“Petitioner”), an authorised agent for sale and distribution of lotteries organised by State of Punjab filed the writ petition impugning the  definition of goods under Section 2(52) of the Central Goods and Services Tax Act, 2017 (“CGST Act”) and consequential notifications to the extent it levies tax on lotteries.

The Petitioner seeks declaration that the levy of tax on lottery is discriminatory and violative of Article 14, 19(1)(g), 301 and 304 of the Constitution of India.

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