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. (IANS)