Kerala FM hails GST rate on lottery tickets, private operators federation expresses unhappiness

Kerala Finance Minister Thomas Isaac expressed satisfaction at the Goods & Services Tax (GST) rate on lottery tickets and said that Kerala played a major role inဣ getting a differential rate on lotteries run directly by state governments and those authorised by st𒈔ate governments but marketed by private distributors.

“Kerala’s role in formulating the GST was appreciated and we stood our ground on a few issues andꦬ these were accepted. Lottery ticket sales will be only profitable for the state-run lottery as its tax rate has been fixed at 12 per cent, while for other state lotteries, the tax rate has been fixed at 28 per cent. In the coming days talks will be held between the representatives of lottery sellers and agents with regards to the new sharing of the commission,” Isaac was quoted as having said, as per .

Meanwhi𒀰le, the All India Federation of Lottery Trade & Allied Industries expressed unhappiness at the 28% GST rate on the face value of lottery tickets sold by private distributors.

The Lottery Federation the government to levy GST only on the margin retained by the operators after paying prizes and not oไn the face value of the lottery ticket.

The federation while asking the government to reconsider the rates ⛦and the manner of imposition of tax, noted that over 25 lakh persons livelihood will be affected due to GST in its present form.

The tax rate on lotteries was one of the most contentious issues at the GST Council meeting on 18th June꧅. Union Finance Minister Arun Jaitley that the dual tax structure of 12% GST on state-run lotteries and 28% GST on state-authorised private lotteries was decided keeping in mind the strong stance taken by the Kerala government.

Read more about .