Launches of the lottery industry for a uniform GST rate of 12%
New Delhi, September 4 () The lottery industry has pressed for a uniform GST rate of 12 percent and the elimination of the prize money tax, saying that the existing dueling rate is hampering business growth.
Currently, a GST of 12 percent is applied to state lotteries sold within a state and 28 percent to those sold outside that state.
To resolve differences in opinions between states, the GST Council had previously constituted a group of eight-member ministers under the chairmanship of the Maharashtra Finance Minister, Sudhir Mungantiwar.
The Council at its July meeting also decided to seek the legal opinion of the Attorney General on the subject.
In a representation made to the Minister of Finance, Nirmala Sitharaman, the Federation of Lottery Trade Industries of All India suggested that the GST Council might consider imposing GST on lotteries after lowering the money component of the lottery ticket prize since This amount is never part of the income in the lottery trade.
Alternatively, we represent and request that the discriminatory tax rate be set aside and that all lotteries can be taxed at a rate of 12 percent after adjusting the prize money component of the lottery ticket's face value, the vice of the association President Kamlesh Vijay said in the representation.
Currently, all lotteries are organized by states according to the provisions of the Lottery Regulation Act of 1998.
According to Vijay, who is also CEO of the Sugal u0026 Damani group, the lotteries were taxed 6% before the implementation of the GST effective July 1, 2017. Currently, lotteries are allowed in approximately 10 states, including Maharashtra, West Bengal, Punjab and Arunachal Pradesh. Lotteries have been operating in the country since 1969. DP CS MR