Lotteries to attract uniform 28% GST rate from March 1

New Delhi: Lotteries will now attract a 28 percent uniform Goods and Services Tax (GST) from March 1.

This GST rate will be applicable to state-run and authorized 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 percent.

According to a notification issued by the revenue department, the GST rate on the supply of lotteries has been amended to 14 percent and a similar percentage will be levied by the states. As a result, total GST on lotteries will increase to 28 percent.

“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 percent GST, while a state-authorized lottery attracts 28 percent tax.

The lottery industry had sought a uniform tax rate on lotteries following which a group of ministers was 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 percent or 28 percent GST for lotteries.

Following this, the GST Council in December voted for a single rate of 28 percent on the supply of lotteries.


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