Supreme Court Dismisses Petition Challenging GST on Lotteries — Holds Lottery as Actionable Claim and Movable Property Under CGST Act. Levy of GST on Face Value of Lottery Tickets Without Abating Prize Money Upheld as Constitutional.

Writ petition under Article 32 challenging the constitutional validity of the definition of 'goods' under Section 2(52) of the CGST Act, 2017 and notifications levying GST on lotteries.

Quashing of the definition of 'goods' under Section 2(52) of CGST Act and notifications levying GST on lotteries, or alternatively, quashing of notifications to the extent they levy tax on face value without abating prize money, or declaration that uniform rate of 12% be applied after adjusting prize money.

The petitioner, an authorized agent for sale of lotteries of Punjab, challenged the levy of GST on lotteries as discriminatory and violative of constitutional rights.

Whether the definition of 'goods' under Section 2(52) of CGST Act, 2017, including lotteries, is unconstitutional? Whether levy of GST on lotteries violates Articles 14, 19(1)(g), 301, and 304 of the Constitution? Whether the writ petition is maintainable given that lottery is res extra commercium?

Petitioner: Lottery is not goods under the Constitution; definition in Section 2(52) is ultra vires; Constitution Bench in Sunrise Associates held lottery is not goods; taxing only lotteries among actionable claims is discriminatory; GST on face value without abating prize money is impermissible. Respondent: Petition not maintainable as lottery is res extra commercium; no fundamental right to trade in lotteries; definition of goods is constitutional; classification is reasonable.

Lottery is an actionable claim and movable property, and the inclusive definition of 'goods' under Section 2(52) of the CGST Act, 2017, is constitutional. The levy of GST on lotteries does not violate Articles 14, 19(1)(g), 301, or 304 of the Constitution. Lottery is res extra commercium, and no fundamental right exists to trade in lotteries.

The petitioner, an authorized agent, for sale and distribution of lotteries organized by State of Punjab has filed this writ petition impugning the definition of goods under Section 2(52) of Central Goods and Services Tax Act, 2017 and consequential notifications to the extent it levies tax on lotteries. Shri Shrivastava submits that lottery is not a goods and under the Central Goods and Services Tax Act, 2017, GST is levied only on goods, hence levy of GST on lottery is ultra vires to the Constitution. Shri Vikramjit Banerjee, learned Additional Solicitor General refuting the submissions of learned senior counsel for the petitioner at the very outset submits that the writ petition filed by the writ petitioner under Article 32 is not maintainable. It is submitted that lottery is 'res extra commercium' and no right under Article 19(1)(g) and Article 301 can be claimed by the petitioner with regard to lottery.

The petitioner filed a writ petition under Article 32 of the Constitution before the Supreme Court challenging the definition of goods under Section 2(52) of the CGST Act, 2017, and notifications levying GST on lotteries. The court heard arguments from both sides and dismissed the petition.

• Central Goods and Services Tax Act, 2017: Section 2(52), Section 9, Section 15, Schedule III
• Constitution of India: Article 14, Article 19(1)(g), Article 246A, Article 269A, Article 279A, Article 301, Article 304, Article 366(12)
• Lotteries (Regulation) Act, 1998: Section 2(b), Section 4
• Integrated Goods and Services Tax Act, 2017:
• Union Territory Goods and Services Tax Act, 2017:
• Goods and Services Tax (Compensation to States) Act, 2017:
• Finance Act, 1994:
• Lotteries (Regulation) Rules, 2010:
• Sale of Goods Act, 1930:
• Transfer of Property Act, 1882: