Photo Credit: Bloomberg Quint

 

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, the Finance Ministry said Wednesday. 

Currently, a state-organised lottery attracts 12 per cent GST while a state-authorised lottery attracts 28 per cent tax. 

The GST Council has constituted an eight-member Group of Ministers under Maharashtra Finance Minister Sudhir Mungantiwar, the Finance Ministry said in a statement. 

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. 

The other members of the committee are West Bengal Finance Minister Amit Mitra, Kerala Finance Minister Thomas Isaac, Assam Finance Minister Himanta Biswa Sarma, Punjab Finance Minister Manpreet Singh Badal, Goa Panchayat Minister Mauvin Godinho, Karnataka Finance Minister Krishna Byre Gowda, Arunachal Tax and Excise Minister Jarkar Gamlin. 

 

 

 

Source: Economic Times

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