Lottery GST 28 Percent From 1March 2021
Lottery News:-The Goods and Services Tax (GST) will be applicable on lotteries at a uniform 28 percent from March 1, 2020. According to a notification, this GST rate will be applicable on lotteries operated and authorized by the state from March 1.
The GST Council, headed by Finance Minister Nirmala Sitharaman, decided in December last year to increase the GST rate on lotteries as well as impose a single rate across the country. Buyers purchasing lottery tickets will now have to pay GST at the rate of 28 percent from March 1.
According to the notification issued by the Department of Revenue, the GST rate on lottery tickets has been revised to 14 percent and 14 percent fee will be charged by the states. As a result, the total GST on lottery will increase to 28 percent.
The notification issued by the Department of Revenue states that the new GST rate on lotteries will be effective from March 1, 2021. Currently, GST is levied at 12 per cent on lotteries operated by state government agencies, while state-authorized lotteries attract tax at the rate of 28 per cent.
The lottery industry had demanded a similar tax on lotteries, a Group of Ministers was formed to consider and suggest the GST rate. The eight-member group, headed by Maharashtra Finance Minister Sudhir Mugantiwar, suggested that a uniform GST should be levied on the lottery at either 18 per cent or 28 per cent. The GST Council then decided in favor of levying GST on lotteries at 28 per cent in December.