Skill Lotto Solutions v. Union of India. - Synopsis
Ahir Mitra 12 May 2021

Skill Lotto Solutions v. Union of India.

2020 SCC OnLine SC 990

The three-judge panel concluded that the imposition of GST on lottery, gaming, and gambling would not violate any human rights. The court also stated that such practices are considered "res extra commercium," making the GST levy on lottery, betting, and gambling legal. Skill Lotto Solutions Pvt. Ltd., a licensed lottery sales and distribution agent in Punjab approached the Supreme Court.

The writ petition challenges the concept of goods under section 2(52) of the Central Goods and Services Tax Act, 2017 (CGST), as well as notifications that levy tax on lotteries. As per Section 2(52) of the CGST Act, 2017, “goods” means every kind of movable property other then money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.

The writ argued that the practice of levying GST on lottery, betting, and gambling is not only discriminatory but also violates Articles 14, 19(1)(g), 301, and 304 of the Indian Constitution. According to the appellant, the lottery is not considered a good under Article 366(12) of the Constitution. The description of goods in Article 336(12) includes all products, commodities, and papers, excluding actionable statements. Considering lottery as goods and levying tax on it is unconstitutional. The Supreme Court's Constitutional bench ruled in Sunrise Associates v. Government of the National Capital Territory of Delhi and Others,[1] that lottery is not good. As a result, treating the lottery as a good under the Act is in violation of the foregoing decision.

The GST, according to the petitioner, was placed on the face value of the lottery ticket. This is illegal since the face value of the lottery ticket covers the winning money that must be reimbursed to the winner. The complainant also argued that taxing the lottery is unfair since no other actionable claim is taxed.

The Judgement given by the competent court is the Lottery, Gambling, and betting are to be included in the word goods under Goods and Services Act, 2017 and are to be taxed accordingly. The duty of The state is to improve and promote the welfare of the people, Lottery, gambling and betting was never to be treated as a business trade or commerce and it should be taxed and it is also constitutional.



[1] (2006)5 SCC 603.

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