Starting March 1, 2020, as much as 28% Goods & Services Tax (GST) will be levied on lotteries. The decision was taken by the GST Council which decided to impose a single rate of 28% on state-run and authorized lotteries in December 2019.
The Central Tax rate for the supply of lotteries has been amended to 14% and a similar percentage will be levied by the states. This will take total GST incidence on lotteries to 28%.
As per the revenue department notification, “This notification shall come into force on the 1st day of March 2020”.
As of now, a state-run lottery attracts 12% GST, while a state-authorized lottery attracts 28% tax.
There were demands that a uniform tax rate should be imposed on lotteries following which a group of ministers was set up to suggest the GST rate. Following this, the GST Council in December voted for a single rate of 28% on the supply of lotteries.