Union Finance Minister Arun Jaitley has announced a dual GST rate for lottery tickets following a GST Council meeting on Sunday, Glaws reports.
Jaitley noted that GST on lottery tickets was one of the most contentious and hotly debated topics in the GST council and several hours were spent discussing the issue.
While the Kerala government wanted the highest GST rate of 28 percent on lotteries (to deter private operators from selling lotteries in Kerala), other states wanted a lower GST rate.
The GST Council thus decided that there would be a dual rate of charging lotteries, wherein lotteries operated by state governments without the help of private distributors or marketing agents would be charged a 12 percent GST rate, while lotteries operated by private distributors would be charged the highest tax rate of 28 percent.
The move is seen to make the operations of private lottery companies unsustainable, says Glaws.
“Private lottery operators have often been accused by law enforcement agencies of committing fraud and evading taxes,” noted the outlet.