GST APPLICABLITY ON LUCKY DRAWS SCHEMES

[Neelesh Vyas]

Whether Lucky draw scheme run by a partnership firm is taxable under GST or Exempt ?.if GST is applicable how it is applicable ?

there are around 1000 members contributing 1000 per month for 12 months  monthly prizes are distributed in cash & kind .

 expert advise  is needed please help .

[priyanshu goyal]

What model you are adopting will determine the GST liability on this.
In GST Act, There is no such discussion for the word Lucky Draw.

As per THE LOTTERIES (REGULATION) ACT, 1998 , “lottery” means a scheme, in whatever form and by whatever name called, for distribution of prizes by lot or chance to those persons participating in the chances of a prize by purchasing tickets.
The definition clearly indicates that three elements are essential for a scheme to be defined as a lottery: chance, consideration (for purchasing tickets) and prize or reward.
If these three elements are present it shall be lottery.

So, if any person has purchased the ticket to participate in the lot, it shall be said to be lottery.
So, you need to see that if you are issuing tickets for which consideration has been charged or not.

Also lotteries can only be issued by State governments and not by other type of persons.
It may also be classified as gambling depending upon the model you are adpoting.

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