GST panel to study uniform tax rate on lottery

Context

  • A GST ministerial panel will suggest whether a uniform tax rate should be imposed on lotteries or the current differential tax rate system be continued.
  • Currently, a state-organised lottery attracts 12 per cent GST while a state-authorised lottery attracts 28 per cent tax.

Key Facts

  • As per the Terms of Reference (ToR) for the GoM, the panel will see whether the disparity in tax structure on lottery be continued or a uniform rate be prescribed for both.
  • It would also suggest whether private persons authorised by the states are misusing the lower rate and getting enriched themselves at the cost of the state and suggest measures to curb it.
  • The GoM would also examine issues related to enforcement including the legal frame work, so as to prevent evasion of tax on lottery and suggest appropriate tax rate to address the problem.

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