Rule 31A explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 31A overrides the general valuation rules for two kinds of supply. A lottery is valued at 100/140 of the face value of the ticket or of the price notified in the Official Gazette by the Organising State, whichever is higher; a chance to win in betting, gambling or horse racing in a race club is valued at hundred per cent of the face value of the bet or the amount paid into the totalisator.
This article follows the Central Goods and Services Tax Rules, 2017 as amended up to 31 October 2025 in the compilation consulted; notifications issued after that date should be checked.
Rule 31A applies "notwithstanding anything contained in the provisions of this Chapter". Under sub-rule (2) the value of a supply of lottery is deemed to be 100/140 of the face value of the ticket or of the price notified by the Organising State, whichever is higher. Under sub-rule (3) the value of an actionable claim in the form of a chance to win in betting, gambling or horse racing in a race club is hundred per cent of the face value of the bet or the amount paid into the totalisator. No rate of tax appears in the rule.
The section behind the rule
Rule 31A belongs to Chapter IV on valuation. It displaces the transaction-value approach that section 15 of the CGST Act, 2017 sets out for the supplies it lists: see section 15 of the CGST Act, 2017. The footnote records that rule 31A was inserted by Notification No. 03/2018 - CT dated 23.01.2018. The earlier wording of sub-rule (2), quoted in the footnote, is not law and is not used here.
If you run or distribute such supplies and are unsure of the value on which tax is computed, our GST health check can review it.
Sub-rule (1): the override
"Notwithstanding anything contained in the provisions of this Chapter, the value in respect of supplies specified below shall be determined in the manner provided hereinafter."
The effect is that rules 27 to 31 do not apply to the supplies in sub-rules (2) and (3). Rule 27 (consideration not wholly in money) and the other general rules are for other cases: see rule 27 of the CGST Rules, 2017.
Sub-rule (2): lottery
"The value of supply of lottery shall be deemed to be 100/140 of the face value of ticket or of the price as notified in the Official Gazette by the Organising State, whichever is higher."
Reading it step by step:
- Take the face value of the ticket.
- Take the price, if any, notified in the Official Gazette by the Organising State.
- Pick whichever is higher.
- The value of the supply is 100/140 of that higher figure.
The figure 140. The footnote records that "140" was substituted by Notification No. 13/2025 - CT dated 17.09.2025, with effect from 22.09.2025, and that sub-rule (2) in its present form was substituted by Notification No. 08/2020 - CT dated 02.03.2020, with effect from 01.03.2020. The fraction is a valuation device, not a rate of tax; the rule prints no rate.
Explanation to sub-rule (2). "For the purposes of this sub-rule, the expression 'Organising State' has the same meaning as assigned to it in clause (f) of sub-rule (1) of rule 2 of the Lotteries (Regulation) Rules, 2010." That is another set of rules, and a reader should check the current law for the corresponding provision.
Sub-rule (3): betting, gambling and horse racing
"The value of supply of actionable claim in the form of chance to win in betting, gambling or horse racing in a race club shall be hundred per cent of the face value of the bet or the amount paid into the totalisator."
Three features:
- Supply covered. An actionable claim in the form of a chance to win, in betting, gambling or horse racing in a race club.
- Measure. The face value of the bet, or the amount paid into the totalisator.
- No deduction. The measure is the whole amount; the sub-rule provides no abatement.
The two measures side by side
| Supply | Sub-rule | Value |
|---|---|---|
| Lottery | (2) | 100/140 of the face value of the ticket or of the price notified in the Official Gazette by the Organising State, whichever is higher |
| Chance to win in betting, gambling or horse racing in a race club | (3) | Hundred per cent of the face value of the bet or the amount paid into the totalisator |
Who does what
| Who | What | Basis | Sub-rule |
|---|---|---|---|
| Supplier of a lottery | Values the supply at 100/140 of the higher of face value and notified price | Official Gazette notification by the Organising State, if any | (2) |
| Supplier of a chance to win in betting, gambling or horse racing in a race club | Values the supply at hundred per cent of the face value of the bet or the amount paid into the totalisator | Face value of the bet or amount paid into the totalisator | (3) |
| Anyone valuing these supplies | Does not apply rules 27 to 31 | "Notwithstanding anything contained in the provisions of this Chapter" | (1) |
A worked example
The figures below are illustrative arithmetic on the fraction the rule prints; the names are invented.
Lottery. Silver Coast State Lottery, an invented lottery of an Organising State, sells a ticket with a face value of one hundred and forty rupees. The State has not notified any different price. The value is 100/140 of one hundred and forty rupees, that is, one hundred rupees. Had the Organising State notified a price in the Official Gazette that was higher than the face value, the value would be 100/140 of the notified price instead.
Race club. Greenmeadows Race Club, an invented race club, takes bets with a face value of five hundred rupees in total, and pays that amount into its totalisator. The value of the supply under sub-rule (3) is hundred per cent of the face value of the bet or the amount paid into the totalisator, that is, five hundred rupees, with no deduction.
Points to watch
- "Whichever is higher." The comparison in sub-rule (2) is between face value and the notified price.
- A valuation fraction, not a rate. The tax rate is found elsewhere; see the rate notification for the supply.
- Betting and gambling. The sub-rule speaks of an actionable claim in the form of a chance to win; that is what is valued.
- Online gaming and casinos. These are valued under rules 31B and 31C: see rules 31B and 31C.
- Other law. The Lotteries (Regulation) Rules, 2010 are named for the meaning of Organising State; check the current law.
Need help checking the value on which tax is paid?
Valuation under a special rule is easy to get wrong when the general rules are applied by habit. We can read your accounts against rule 31A and the neighbouring rules and tell you where the value should be. See our GST health check.
Key takeaways
- Rule 31A overrides the general valuation rules of Chapter IV for the supplies in sub-rules (2) and (3).
- Lottery: 100/140 of the face value of the ticket or of the price notified in the Official Gazette by the Organising State, whichever is higher.
- Betting, gambling and horse racing in a race club: hundred per cent of the face value of the bet or the amount paid into the totalisator.
- "140" was substituted by Notification No. 13/2025 - CT dated 17.09.2025, with effect from 22.09.2025.
- The rule prints no rate of tax.
Read next
- Rules 31B and 31C of the CGST Rules, 2017: online gaming and actionable claims in casinos
- Rule 27 of the CGST Rules, 2017: value of supply where consideration is not wholly in money
- Section 15 of the CGST Act, 2017: value of supply
- Rule 31: residual valuation by reasonable means
Disclaimer: Based on the Central Goods and Services Tax Rules, 2017 and the GST Acts as amended up to 31 October 2025 in the compilation consulted, read with the Finance Act, 2026 where this article says so, as consulted on 2 October 2026. Notifications, circulars and amendments issued after that date, the forms on the common portal and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.