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18 Jun 2019

Kerala assembly passes resolution against uniform GST for lotteries, deadlock in GoM over lottery tax rate

GST

The Kerala legislative assembly passed a uౠnanimous resolution urging the Central Government to withdraw the move to bring uniform Goods and Services Tax (GST) rate on state-run lottery and other state lot🐻teries.

As per , the legislative assembly passed the resolution move🎃d by state Finance Minister Thomas Isaac after a discussion over it on the floor of the House.

“The Centre’s move is to reduce the tax on lotteries run by intermediaries and bring it on par with the state-run l꧅otteries. This will affect thousands of lottery agents and sellers in Kerala.

This movಞe will affect the tax revenue of the state, as well as the Centre,” Isaac said.

Currently, 12% GST is being charged on lotteries sold by state governments dir🀅ectly, is being levied on th🌳e face value of lottery tickets authorised by state governments but sold through private lottery distributors.

Private lottery companies have made against this discriminatory and high rate of tax, and claimed that the taxation structure would cripple and desꦑtroy the🎃ir business.

In a related development, it has been reported that the headed by Maharashtra Finance Minister Sudhir Mungantiwar, that had been tasked by the GST Council to study the different♐ial tax rates on lotteries, has so far, failed in its efforts to recommend a uniform tax rate for lotteries.

According to , the panel failed to ﷽reach a consensus after 🐲representatives of West Bengal and Kerala opposed the idea, citing loss to state governments.

The GST Council is slated ⛎to discuss the issue on 21st June, although a decision on the issue is unlikely, given the lack of consensus o𝓰n the issue.

Read more about – Taxes, prices and prizes.

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