Kerala to protect state lottery from GST

The government of Kerala is considering a new law that would negate the impact of the Goods & Services Tax (GST) on lotteries, local media reports.

According to the state government, the Kerala Tax on Paper Lotteries Act of 2005 will be inoperative should the new GST be implemented,

The Act, which was enacted in 2005, is important as it allows the state to control the printing and sales of lotteries.

The Act also allows the government to place a Rs 1 million (US$15,500) tax on every bumper draw of paper lotteries and Rs 250,000 in respect of any other draw, to be paid by each promoter.

"State lotteries are mostly associated to social causes, such as the Karunya Lottery in which the profit is used for medical services to the poor and cancer patients," said V S Mani, president of the Kerala State Lottery Agents and Sellers Union, quoted by Business Standard.

"This took away the profit and price motive from the process. While price is a factor, people buy tickets to help someone. Once lotteries from other states return, it would again go back to the levels of gambling, affecting the lives of many. This would again result in public ire against lotteries. This will also affect the agents and sellers,” he added.

Finance Minister T M Thomas Isaac however made assurances that the state is looking at possibilities to bring in a new Act to protect the state lottery.

"With implementation of GST, the tax laws on paper lotteries will become inoperative. This is a serious issue. We have to explore the possibility of new legislation within the legislative jurisdiction of the state assembly. The government is seriously considering to enact a new law for imposing a licence fee on the draws of paper lotteries. Considering the urgent requirement for such a law, the government has decided to present a new Bill for the purpose," he said.

More news from this jurisdiction

IndiaThursday, Feb 08, 2018

India’s lottery market has the potential to be at least four times its current size if more states were to legalize sales and the industry presented more appealing content, says Kamlesh Vijay, group CEO for Sugal & Damani, one of the country’s largest lottery companies.

IndiaMonday, Jan 29, 2018

The government of Maharashtra has initiated a process to recover more than Rs. 933 crores (US$142 million) in taxes from the lotteries of Arunachal Pradesh, Sikkim and Mizoram, which are sold within the state.

IndiaMonday, Jan 29, 2018

AGTech Holdings has announced the launch of a new casual gaming and shopping platform in India, called the Gamepind Platform.

IndiaMonday, Jan 22, 2018

The Maharashtra government is looking to shift its paper lottery to online in order to earn more revenue.

IndiaFriday, Jan 19, 2018

Goa could become a US$1 billion market once it transitions to a land-based market, said analyst Grant Govertsen in a note on Friday.

IndiaWednesday, Jan 17, 2018

The All India Federation of Lotteries Trade and Allied Industries has issued a public appeal for the reduction of GST on state-authorized lotteries.

IndiaTuesday, Jan 16, 2018

Delta Corp posted more than a 300 percent increase in net profit for the third quarter of FY18, reaching Rs. 44.7 crore (US$7 million), according to the latest figures.