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GoM favours uniform tax on lottery, GST Council to decide rate on Feb 20

Currently, a state-organised lottery attracts 12% GST while a state-authorised lottery attracts 28% tax

Press Trust of India  |  New Delhi 

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A state ministerial panel set up to review rate on lottery Monday favoured a uniform rate of either 18 per cent or 28 per cent -- a final call on which would be taken by the Council at its meeting on February 20.

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

The eight-member Group of Ministers under Finance Minister Sudhir Mungantiwar favoured hiking GST rate on the state-organised lottery to either 18 per cent or 28 per cent. While the GST rate on state-authorised lottery would be retained at 28 per cent or brought down to 18 per cent.

"The GoM favoured a uniform GST rate for both state-organised and state-authorised lotteries. A final call on whether that rate should be 18 per cent or 28 per cent would be taken by the on Wednesday," an said.

The other members of the committee are Finance Minister Amit Mitra, Thomas Isaac, Finance Minister Himanta Biswa Sarma, Manpreet Singh Badal, Mauvin Godinho, Krishna Byre Gowda, Arunachal and

While Isaac did not attend the GoM meet on medical ground, Badal was not present as he had to present the state budget in

Tax officers from attended the meeting and is said to have flagged the issue of rate rationalisation in the light of the slated to be held by May.

"Other states, including major ones like Maharashtra, Assam, favoured a uniform GST rate," the added.

The GoM was also tasked to suggest whether private persons authorised by the states were misusing the lower rate and getting enriched themselves at the cost of the state and suggest measures to curb it.

It was also mandated to examine issues related to enforcement including the legal frame work, so as to prevent evasion of tax on lottery and suggest appropriate to address the problem.

"It was decided in the GoM meet that decision relating to changes should be brought before the on February 20. Evasion aspect in lottery can be dealt in subsequent meetings," the said.

The ministerial panel was set up last month to suggest whether a uniform should be imposed on lotteries or the current differential tax rate system be continued.

The 33rd GST Council meeting would also take up the issue of lowering (GST) on under-construction residential properties to 5 per cent without ITC, from 12 per cent currently. On affordable housing segment, it was suggested that GST be slashed to 3 per cent, from 8 per cent.

Currently, GST is levied at 12 per cent with input tax credit (ITC) on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.

The effective pre-GST tax incidence on such housing property was 15-18 per cent.

GST, however, is not levied on buyers of for which completion certificate has been issued at the time of sale.

There have been complaints that builders are not passing on the ITC benefit to consumers by way of reduction in price of the property after the rollout of GST, following which the GST Council had set up a ministerial panel to suggest ways to boost realty sector.

First Published: Mon, February 18 2019. 18:35 IST