Case Comment: Skill Lotto Solutions (P.) Ltd. V. Union Of India
- IJLLR Journal
- Oct 17
- 2 min read
Sanskruti Soumya Seth, KIIT School of Law, Odisha
INTRODUCTION
The Goods and Services Tax (GST), introduced in 2017, redefined the scope of ‘goods’ and ‘services’ in India’s taxation regime, giving rise to several interpretative challenges. A major controversy arose when lotteries were classified as ‘goods’ under section 2(52) of Central Goods and Services Tax Act. This led to the landmark case of Skill Lotto Solutions (P.) Ltd. v. Union of India, where the Supreme Court upheld the validity of imposing GST on lottery, betting, and gambling. The Court observed that these activities fall within the category of ‘res extra commercium’, meaning they lie outside the sphere of lawful commerce, and therefore taxing them does not infringe upon any fundamental rights. The decision reflects how the GST framework continues to evolve through the interaction of legislative policy and judicial interpretation.
BENCH
Justice Ashok Bhushan, Justice R. Subhash Reddy and Justice M.R. Shah.
FACTS OF THE CASE
The writ petitioner was an authorized agent for the sale and distribution of lotteries organized by the State of Punjab. The petitioner submitted that lottery is not a good as per the definition of ‘Goods’ under Section 2 (52) and levying tax on lottery is discriminatory and violative of articles 14, 19(1)(g), 301, 304 of the Constitution. The petitioner further argued that the GST rate should be uniform across States and that the tax base should exclude the portion representing prize money, as it never formed part of the distributor’s income.
LEGAL ISSUES
(I) Whether the writ petition relating to lottery was maintainable under article 32 of the Constitution of India since the writ petition related to lottery, which is res extra commercium and the petitioner could not claim protection under article 19(1)(g)?
