In its 38th meeting on Wednesday, the GST council voted to bring lotteries across India under a uniform tax rate of 28%. There were 28 total votes, out of which, 21 were in favor while 7 were against it. The new GST rates on lotteries will be applicable starting 1st March, 2020.
Finance Minister Nirmala Sitharaman on deviating from tradition of not voting in council: Every attempt was made to keep tradition alive but eventually council was reminded that tradition was not part of rulebook. It was not imposed by council or me but on a request from a member https://t.co/9VplTLJWiN pic.twitter.com/nXxKx8hJ9O
— ANI (@ANI) December 18, 2019
The GST council meeting was headed by union finance minister Nirmala Sitharaman and attended by finance ministers of all the states.
This was the first time that a decision by GST council was taken by voting instead of consensus. After the event, Nirmala Sitharaman stated that all efforts were made to keep the tradition alive.
Currently, the state run lotteries are taxed at 12 percent, whereas, state authorised lotteries organised by private firms are taxed at 28 percent.
The current decision will impact all the offline lotteries purchased across India. The central government is yet to announce a law to regulate online lotteries.
Lotteries Market in India
Lotteries in India have been there for a long time, however, till now, there was no such uniform regulation rule which impacted the lotteries nationwide. State government had different set of rules for lotteries in those respective states. However, with this move, lotteries market is expected to experience a boost and nationwide acceptance.