Government likely to set 28% GST rate for lottery tickets
It seems that the central government has made up its mind to put lot🌼teries in ಞthe highest GST slab of 28 per cent, as per a recent report in .
The report quotes sources as saying that both lotteries and gambling would be kept in the highest tax bracket. The model law for GST passed by the Parliament places actionable claim (Supreme Court judgments have stated that lottery tickets 🐎are actionable claims) in the category of ‘goods’ and not 🌄‘services’, making it likely that the highest rate of tax will apply to lottery tickets.
E𒉰arlier, Revenue Secretary Hasmukh Adhia that gambling and betting would be taxed at ജa rate higher than 18 per cent.
GST rate of either 12 per cent or 18 per ಌcent would be applicable on services, while some categories ✃of demerit goods are likely to face a GST rate of 28 per cent or more. It is also understood that the central government is likely to charge GST on the ‘face value’ of lottery tickets and not on the operators margin, as per the report.
The fitment of goods ♌and services into different categories of rat✨es is likely to be finalised in the GST Council meeting in Srinagar on 18-19th May.
Most private lottery operators however have opposed the move to include lotter♐ies in the highest GST rate and the proposal to charge GST on the face value of lottery tickets.
However, Kerala Finance Minister Thomas Issac has supported the move to levy a higher GST rate, saying that private lottery operators do not conf♏o꧙rm to the Lotteries (Regulation) Act, 1998 and Rules framed thereunder.
“A higher tax regime would drive these 🍷people out of business. I am prepared to lose some revenue because of higher GST slab on lotteries. It will eliminate a big law-and-order problem around lotteries in our country” he added.
Incidentally, the Comptroller and Auditor General of India (CAG) in its recentand has severely indicted private companies for de♚frauding customers and the state go🐷vernments.
The CAG reports indicate that some private com🐷panies have collectively not deposওited dues worth over Rs. 26,000 crores to the Mizoram and Nagaland governments.
The scathing reports, unsparing in their critiꦯcism of lotteries operated by these companies, further point out the possibility of rigging or manipulation of the winning numbers by private companies, flagrant violations of the Lotteries (Regulation) Act and Rules, vulnerability 💎of computer systems of the private operators conducting lotteries and rampant tax evasion.
It is possible that the central government has taken cognisance of these CAG reports and decided to impose a higher GST rate on lottery tick♕ets, to discourage the appointment of private companies as lottery agents and distributors.
