Lottery news: No more tax on prize money? See what other demands have been raised
Lottery news: Currently, a 12% GST is levied on state lotteries sold within a state, while those sold outside that state have to pay 28%.
Since a dual rate of Goods and Services Tax (GST) is imposed on lottery, thereby hampering its growth, the lottery industry has sought a uniform rate of tax. Currently, a 12% GST is levied on state lotteries sold within a state, while those sold outside that state have to pay 28%, according to a PTI report.
Notably, in what will ease the minds of lottery ticket buyers, the lottery industry has pressed for removal of tax on the prize money. It has also asked for a uniform GST rate of 12% for growth of the business. Notably, an eight-member group of ministers was earlier constituted by the GST Council under the chairmanship of Maharashtra Finance Minister Sudhir Mungantiwar to sort out differences among states.
In its July meeting, the Council had reportedly decided to seek legal opinion from the Attorney General on the issue.
All India Federation of Lottery Trade & Allied Industries had submitted their representation to Finance Minister Nirmala Sitharaman. The federation had reportedly suggested that the GST Council could consider imposing GST on lotteries after abating the prize money component of the ticket as the said amount never forms part of the income in the lottery trade.
"In the alternative, we represent and request that the discriminatory rate of tax be set aside and all the lotteries may be taxed at the rate of 12 per cent after adjusting the prize money component from the face value of lottery ticket," the association's vice president Kamlesh Vijay had reportedly stated in the representation.
As per the provisions of Lottery Regulation Act 1998, states organise all lotteries. About 10 states, including Maharashtra, West Bengal, Punjab and Arunachal Pradesh, have been permitted to organise lotteries, which have been operating in the country since 1969.
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Kamlesh Vijay, who is also group CEO of of Sugal & Damani, told PTI that the lotteries were taxed at 6 per cent before the implementation of the GST with effect from July 1, 2017.
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