GST on Kerala Lottery Tickets
GST on Kerala lottery tickets is 40%, charged on the ticket’s base value since 22 September 2025. The GST sits inside the printed price. A ₹50 weekly ticket carries ₹14.29 of GST, according to the Kerala Gazette notifications.
What is the GST rate on Kerala lottery tickets?
The GST rate on Kerala lottery tickets is 40%. Lottery falls in Schedule III of the GST rate notifications, the 40% schedule. The rate applies from 22 September 2025.
Schedule III lists “specified actionable claim” as item 13. Its explanation names 6 activities: betting, casinos, gambling, horse racing, lottery and online money gaming. A lottery ticket is taxed as this kind of actionable claim.
The Kerala Gazette notifications print the rate on every scheme. The Karunya weekly notification of 10 November 2025 reads: ticket price ₹35.714 plus 40% Goods and Services Tax. The printed price is ₹50.
How much GST is inside a Kerala lottery ticket price?
GST is about 28.6% of every Kerala ticket price, because 40% is added to a base value. A ₹50 ticket holds ₹35.71 of base value and ₹14.29 of GST. The table uses the official Gazette figures.
| Lottery (notification) | Printed price | Base value | GST at 40% |
|---|---|---|---|
| Weekly lotteries, e.g. Karunya (10 Nov 2025) | ₹50 | ₹35.714 | ₹14.29 |
| Monsoon Bumper 2026, BR-110 | ₹250 | ₹178.57 | ₹71.43 |
| Vishu Bumper 2026, BR-109 (23 Mar 2026) | ₹300 | ₹214.287 | ₹85.71 |
| Pooja Bumper 2026, BR-112 (19 Sep 2026) | ₹300 | ₹214.286 | ₹85.71 |
| Christmas-New Year 2025-26, BR-107 (19 Nov 2025) | ₹400 | ₹285.72 | ₹114.28 |
The Gazette calls the base value “ticket price” or “face value”. It is the printed price divided by 1.4. The buyer pays the printed price only, with no GST added at the counter.
How much GST does one draw carry?
A full weekly draw carries about ₹15.43 crore of GST on the tickets printed. The Karunya notification prints 1,08,00,000 tickets. Each carries ₹14.29 of GST.
The Christmas-New Year Bumper 2025-26 printed 90 lakh tickets. The GST inside them comes to about ₹102.85 crore. These figures assume every printed ticket is sold.
How did the 40% GST rate change the Vishu Bumper?
The Vishu Bumper kept its ₹300 price, but the GST share rose and the prize money fell. The 2025 and 2026 Gazette notifications show the change side by side.
| Item | Vishu Bumper 2025, BR-103 | Vishu Bumper 2026, BR-109 |
|---|---|---|
| Notification | G.O.(P) No. 41/2025/TAXES, 20 Mar 2025 | G.O.(P) No. 49/2026/TAXES, 23 Mar 2026 |
| Printed price | ₹300 | ₹300 |
| GST rate | 28% | 40% |
| Base value per ticket | ₹234.375 | ₹214.287 |
| GST per ticket | ₹65.63 | ₹85.71 |
| Tickets printed | 54 lakh | 54 lakh |
| Gross value of tickets | ₹126,56,25,000 | ₹115,71,49,800 |
| Prize money offered | ₹48,59,60,000 | ₹44,95,64,000 |
The GST per ticket rose by about ₹20. The gross value of the tickets fell by about ₹10.85 crore. The prize money offered fell by ₹3.64 crore.
The weekly lotteries were re-notified after the change. The Karunya notification of 10 November 2025 replaced the one of 17 September 2025. Its explanatory note links the revised prize structure to “the changes in the Goods and Services Tax, 2025 rate”.
Which GST notification sets the 40% rate on lottery?
The 40% rate comes from Notification No. 9/2025-Central Tax (Rate) and No. 9/2025-Integrated Tax (Rate), dated 17 September 2025. Both took effect on 22 September 2025. They replaced the 2017 rate notifications.
The GST Council recommended the change at its 56th meeting. The Council’s FAQ, released on 3 September 2025, answers the lottery question directly. Lottery, betting, casinos, gambling, horse racing and online money gaming attract 40%.
The Hindu reported the Kerala State GST Department’s statement on 21 September 2025. Lottery tickets moved to 40% from 22 September. The rate for cigarettes and pan masala was deferred to a later date.
Did Kerala object to the 40% rate?
Kerala objected in a representation to the Union Finance Minister, according to The Hindu. The State said its lottery supports the livelihood of close to 2 lakh people. It asked that states fix the rate for their own lotteries.
What was the GST on lottery tickets before September 2025?
The GST on lottery tickets was 28% from 1 March 2020 to 21 September 2025. The GST Council recommended a uniform 28% at its 38th meeting on 18 December 2019. The rate covered state-run and state-authorised lotteries alike.
Before March 2020, the rates differed. Lotteries run by a state paid 12%. Lotteries authorised by a state paid 28%. The Council’s December 2019 newsletter records the vote: 21 states for, 7 against and 3 abstaining.
| Period | GST on a state-run lottery | Source |
|---|---|---|
| Up to 29 Feb 2020 | 12% | GST Council, 38th meeting summary |
| 1 Mar 2020 to 21 Sep 2025 | 28% | GST Council, 38th meeting, 18 Dec 2019 |
| From 22 Sep 2025 | 40% | Notification No. 9/2025-Central Tax (Rate) |
The Summer Bumper 2025 shows the 28% period. Its notification of 1 February 2025 priced the ticket at ₹250. That was ₹195.32 plus 28% GST.
Is GST charged on Kerala lottery prize money?
No. GST is part of the ticket price, not a charge on the prize. A prize above ₹10,000 faces 30% TDS instead. The deduction falls under Section 393(3) of the Income-tax Act 2025 (formerly Section 194B).
Kerala Police warned in August 2024 about fake wins that demand GST or stamp duty before release. A genuine prize never needs a GST payment by the winner. Report such demands on helpline 1930.
Every prize tier of each ticket is on the Kerala lottery prize structure page.
Kerala lottery GST questions
What is the GST rate on lottery tickets in India?
40%, from 22 September 2025. Lottery is a “specified actionable claim” in Schedule III of Notification No. 9/2025.
What is the GST percentage on a Kerala lottery ticket?
40% on the base value. That equals about 28.6% of the printed price, or ₹14.29 inside a ₹50 ticket.
How much GST is in a ₹50 Kerala lottery ticket?
₹14.29. The Gazette notification sets the ticket at ₹35.714 plus 40% GST.
How much GST is in a ₹400 bumper ticket?
₹114.28. The Christmas-New Year Bumper 2025-26 notification sets ₹285.72 plus 40% GST.
When did lottery GST become 40%?
On 22 September 2025, when Notification No. 9/2025-Central Tax (Rate) of 17 September 2025 took effect.
What was the lottery GST rate before 40%?
28%, from 1 March 2020. Before that, state-run lotteries paid 12% and state-authorised lotteries paid 28%.
Which items come under 40% GST?
For services and actionable claims, the 40% list covers betting, casinos, gambling, horse racing, lottery and online money gaming.
Why did the Kerala ticket price stay at ₹50 after the GST rise?
The base value was cut instead. The weekly notifications set ₹35.714 as the base, so 40% GST keeps the total at ₹50.
Did the prize money fall after the GST rise?
Yes, for the Vishu Bumper. Prize money fell from ₹48.60 crore in 2025 to ₹44.96 crore in 2026, at the same ₹300 price.
Does the buyer pay GST separately at the counter?
No. The GST is inside the printed price. The buyer pays only the price on the ticket.
Is GST deducted from Kerala lottery prize money?
No. Prize money faces 30% TDS above ₹10,000, not GST.
Is a request for GST to release a lottery prize genuine?
No. Kerala Police call such demands a scam. Report them on helpline 1930.
Is GST on lottery the same in every state?
Yes. The 40% rate in Notification No. 9/2025 applies to lottery across India.
Can a state set its own GST rate on lottery?
No. The rate is set by the GST rate notifications on the GST Council’s recommendation. Kerala asked for that power in 2025.
Related guides
- Where Kerala lottery money goes
- Kerala lottery ticket price history
- Kerala Paper Lotteries Rules
- Kerala lottery tax calculator
Sources: GST rate notification 9/2025-Integrated Tax (Rate), 17 September 2025; GST Council FAQ, 56th meeting (PIB, 3 September 2025); GST Council newsletter, December 2019; Kerala Gazette notifications for Karunya (10 November 2025), BR-103, BR-107, BR-109, BR-110, BR-112 and the Summer Bumper 2025; The Hindu, 21 September 2025. Not tax advice. Unofficial site.