DUAL RATE ON SALE OF LOTTERY TICKETS STANDS AMEND TO GST AT 28%

The decision to levy single rate of GST on state run lotteries and state authoriZed lotteries was taken in December last year. To which the notification released states that with effect from 1st March, 2020, there will be 28% GST on sale of lottery tickets.

Let’s take a look at the current scenario :

Currently there exists a dual rate of taxation on sale of lottery tickets :

  • 12% GST- State run lotteries
  • 28% GST- State authorized lotteries

> Now, one will ponder that what’s the difference between state run and state authorized lotteries ?

The difference lies in the ownership of such business.

  • State run lotteries are run by the government and
  • State authorized lotteries involves private agents and private organizations. This led to the emergence of unsustainable business environment for private firms to a certain extent.

The amendment to Central Tax rate to 14% will ensure the GST incidence on sale of lottery tickets at 28%. This move will surely bring the parity and will provide the similar amount of exposure of opportunities for both state run lotteries as well as state authorized lotteries.

NOTIFICATION FOR PROVIDING EFFECT OF THE SAME :

AUTHOR : ANISHA AHUJA (CLICK HERE TO VIEW PROFILE)