Finance

In a first, GST Council votes for uniform lottery rate

Updated : December 19, 2019 07:39 AM IST

A uniform rate of 28 percent GST rate will now be applicable on lotteries from March 1. Currently, dual GST rates are imposed on lotteries.

As many as 21 states voted in favour of 28 percent GST rates as opposed to 7 against it.

Currently, a GST of 12 percent is levied on state lotteries sold within a state and 28 percent on those sold outside that state.

The Goods and Services Tax (GST) Council on Wednesday voted for a uniform rate of 28 percent on lotteries across the country.

Decisions in the previous 37 meetings of the GST Council, headed by the union finance minister and comprising of representatives of all states and UTs, had been taken unanimously.

These included fixing of tax rates on dozens of goods and services but never had voting done to decide on the issue. However, when the issue of levy of GST on lottery came up at the 38th meeting of the Council, consensus eluded, sources said. This led to a vote being taken to decide on the issue by a majority.

A uniform rate of 28 percent GST rate will now be applicable on lotteries from March 1. Currently, dual GST rates are imposed on lotteries. As many as 21 states voted in favour of 28 percent GST rates as opposed to 7 against it.

The lottery industry has been pressing for a uniform GST rate of 12 per cent and removal of tax on the prize money, saying the existing dual rate is hampering the growth of the business.

Currently, a GST of 12 percent is levied on state lotteries sold within a state and 28 percent on those sold outside that state. To sort out differences in the views among states, the GST Council had earlier constituted an eight-member group of ministers under the chairmanship of Maharashtra finance minister Sudhir Mungantiwar.

(With inputs from agencies)

In a first, GST Council votes for uniform lottery rate

You May Also Like

Coronavirus News LIVE Updates: Uttar Pradesh records 1,654 fresh cases; India's daily active cases 2nd highest in world

Closing Bell: Sensex, Nifty end higher as IT stocks, RIL jumps; financials weigh

A washout quarter? MOSL expects Nifty earnings to fall 41% in Q1. Here are its top picks

Trending on CNBC-TV18

recommended for you