The GST Council is considering a uniform rate of 28 percent for all lotteries, a report in The Times of India said.
At present, the goods and services tax (GST) on state lotteries is 12 percent, while those authorised by the state but run by private agencies are taxed at 28 percent.
The report also said that the Centre was looking to ban online lottery. The final decision will be taken by the home ministry.
The GST Council is scheduled to meet in Goa on September 20. The council’s members are likely to have an intense debate on lottery rates.
Moneycontrol could not independently verify the story.
States are divided on the issue. Ten states, including Goa, Kerala, Maharashtra and Andhra Pradesh, allow lotteries.
A hike in the rate to 28 percent could hurt states like West Bengal, but many other states are in favour of an increased tariff, the report said.
Many see lotteries as a sin good and think a higher GST rate will discourage people from spending money on them.
The council had referred the matter to the country’s top legal officer, Attorney General KK Venugopal, in July, the report added.
At the upcoming meeting, the Centre will likely push for one rate and Kerala will support the dual structure, a report in Business Standard said.
The council will take the views of both the AG and the group of ministers, who have suggested a single rate, the report said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
