Photo: Shoba Narayan
Photo: Shoba Narayan

Govt forms ministerial panel to resolve GST issues plaguing lottery business

The panel has been set six terms of reference which include the most crucial question of whether the two kinds of lotteries should attract the same rate of tax

New Delhi: The government has constituted an eight-member ministerial panel to study and resolve issues that are hurting the lottery business in the country as a result of implementation of the Goods and Services Tax (GST).

Currently, GST on lotteries run by state governments is 12% while those operated by private distributors is 28%, the highest possible rate. The Centre wants to charge both at the maximum rate while states are keen on maintaining the distinction.

The panel has been set six terms of reference which include the most crucial question of whether the two kinds of lotteries should attract the same rate of tax, according to a government release. The members will also suggest remedial steps if private distributors are found to be misusing the lower GST rate and hence evading taxes.

A decision to form a panel was taken at GST Council’s last meeting on January 10. Maharashtra Finance Minister Sudhir Mungantiwar is the convener of the panel. Other members of the panel are finance ministers of Kerala, West Bengal, Assam, Punjab and Karnataka, Goa’s minister of panchayat and Arunachal Pradesh’s minister of taxes and excise. The panel will submit its findings and recommendations at the next meeting of the GST Council, the release said.

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