GST ministerial panel to study uniform tax rate on lotteries; GoM to examine issues related to enforcement

New Delhi: 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 on Wednesday. Currently, a state-organised lottery attracts 12 percent GST while a state-authorised lottery attracts 28 percent tax. [caption id=“attachment_1318105” align=“alignleft” width=“380”] Representational image. AFP.[/caption] The GST Council has constituted an eight-member group of ministers (GoM) 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 and Arunachal tax and excise Minister Jarkar Gamlin.     To keep watching India’s No. 1 English Business News Channel – CNBC-TV18, call your Cable or DTH Operator and ask for the Colors Family Pack (inclusive of 24 channels), available for Rs. 35/- per month, or subscribe to the channel for Rs. 4/- per day. To keep watching the Leader in Global Market & Business News – CNBC-TV18 Prime HD, call your Cable or DTH Operator and ask for the Colors Family HD Pack (inclusive of 25 channels), available for Rs. 50/- per month, or subscribe to the channel for Rs. 1/- per day.