To support lossless mode at the block level when in-loop reshaping (LMCS) is enabled, the following changes are proposed to the existing LMCS pipeline. In intra mode, encode lossless blocks in the original domain, thus bypassing inverse mapping after reconstruction in the decoder. In inter mode, encode lossless blocks in the original domain, thus bypassing both forward mapping after motion compensation and inverse mapping after reconstruction in the decoder. In both modes, disable any LMCS-related color scaling.