Lotteries will now attract a 28 per cent uniform Goods and Services Tax (GST) from March 1.
This GST rate will be applicable to state-run and authorised lotteries from March 1, according to a notification.
The GST Council, led by Finance Minister Nirmala Sitharaman, had in December last year decided to increase the rate as well as implement a single rate for lotteries. Buyers of tickets for lotteries would now have to shell out 28 per cent.
According to notification issued by the revenue department, the GST rate on supply of lotteries has been amended to 14 per cent and a similar percentage will be levied by the states. As a result, total GST on lotteries will increase to 28 per cent.
“This notification shall come into force on March 1, 2020,” a notification by the revenue department said.
Currently, lotteries run by the state-owned agencies levy 12 per cent GST, while a state-authorised lottery attracts 28 per cent tax.
The lottery industry had sought a uniform tax rate on lotteries following which a group of ministers were set up to suggest the GST rate.
The eight-member group of ministers headed by Maharashtra Finance Minister Sudhir Mungantiwar, had recommended that the council would decide either on 18 per cent or 28 per cent GST for lotteries.
Following this, the GST Council in December voted for a single rate of 28 per cent on supply of lotteries.-IANS News
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