A 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 today.
Currently, a state-organised lottery attracts 12 percent Goods and Services Tax while a state-authorised lottery attracts 28 percent tax.
The GST Council has constituted an eight-member Group of Ministers under Maharashtra Finance Minister Sudhir Mungantiwar, the ministry said in a statement. As per the terms of reference for the group, 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 group would also examine issues related to enforcement, including the legal framework, to prevent evasion of tax on lottery and suggest appropriate tax rate to address the problem.
The other members of the committee are the finance ministers of West Bengal, Kerala, Assam, Punjab and Karnataka—Amit Mitra, Thomas Isaac, Himanta Biswa Sarma, Manpreet Singh Badal and Krishna Byre Gowda. Goa Panchayat Minister Mauvin Godinho and Arunachal Tax and Excise Minister Jarkar Gamlin are also members.
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