Supreme Court Upholds Tax Levy On Ink & Chemicals Used To Print Lottery Ticket; Says Their 'Deemed Sale' Occurs With Lottery Sale

The Supreme Court held that ink and other chemicals used to print lottery tickets are liable to goods-and-services tax because their “deemed sale” occurs contemporaneously with the sale of the lottery itself. The Court accepted the tax authority's characterisation of the supply of printing inputs as incident to the lottery transaction, thereby allowing taxation at the stage when the lottery is sold. The ruling resolves a contentious classification question — whether consumables used in ticket production are independent taxable supplies or part of a composite transaction — and the Court’s reasoning affirms a broad approach to deemed supplies for levy purposes. Practically, the judgment stabilises tax treatment for lottery suppliers and revenue authorities and has implications for valuation and input-credit claims in similar composite-supply scenarios.