No rate hike, GST Council votes for uniform lottery rate

TIL Desk/Business/New Delhi/ While the all-powerful GST Council kept rates unchaged in its 38th meeting on Wednesday, it voted for a uniform rate of 28 per cent on both state-run and state-authorised lotteries. During the voting, 21 states voted in favour of the uniform rate.  This is first time since the launch of the new indirect tax regime that Council has taken a decision through the voting route. Earlier, all decisions including the contentious ones, were taken unanimously.

Union Finance Minister Nirmala Sitharaman, who chairs the Council, also said that every attempt was made to keep the set tradition alive. “Every attempt was made to convince, based on the opinion making in the house. Eventually, the Council was reminded that the rules allow (it) and that tradition is not part of the rule book. It was reminded to me that tradition was not part of rule book and the rules are what should govern the running of the house,” she said in the post-meeting press conference.

The uniform GST rate on lotteries would apply from March 1, 2020. There are two rates prescribed on the sale of lottery tickets. Lotteries run by state governments are taxed at 12 per cent while those authorised by states and operated by private firms as well as inter-state supplies of lotteries are taxed at 28 per cent. In a bid to facilitate development of industrial parks, the GST Council decided to exempt the upfront amount payable for long-term lease of industrial and financial infrastructure plots in case of an entity having 20 per cent or more ownership of Central or state government.