Lok Sabha Question No. 3144 (UNSTARRED), answered on 2018-01-05
Subject: GST on Lottery Business
Ministry: FINANCE
Asked by: KRUPAL BALAJI TUMANE

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA

## UNSTARRED QUESTION NO.3144

## TO BE ANSWERED ON FRIDAY THE 5 TH  JANUARY, 2018 PAUSHA 15, 1939 (SAKA)

## GST ON LOTTERY BUSINESS

## †3144. SHRI KRUPAL BALAJI TUMANE:

Will the Minister of FINANCE be pleased to state:

- (a) the details of rates of Goods and Services Tax (GST) levied on lottery business in the country;
- (b) whether due to implementation of GST the lottery business has slowed down and if so, the details thereof;
- (c) whether the Government has received any request to reduce or do away with GST on lottery business;
- (d) if so, whether the Government has accepted the request; and
- (e) if not, the reasons therefor and the steps taken by the Government for revival of lottery business in the country?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI SHIV PRATAP SHUKLA)

(a): The rate of GST applicable on 'Lottery run by State Governments' is 12% and on 'Lottery authorized by State Governments' is 28%. 'Lottery run by State Governments'  means  a  lottery  not  allowed  to  be  sold  in  any  state  other  than  the organizing state.'Lottery authorized by State Governments' means a lottery which is authorized to be sold in State(s) other than the organising state also.

(b): While Arunachal Pradesh, Goa, Mizoram, Nagaland and Sikkim have reported that lottery  business  has  slowed  down  after  the  implementation  of  GST  on  lotteries; Maharashtra  has  reported  that  sale  volume  of  Maharashtra  State  Lottery  has increased. Number of draws of lotteries organized by other States (such as Mizoram, Sikkim,  Goa,  Bodoland,  Arunachal  Pradesh and  Nagaland) in Maharashtra  has  also increased after implementation of GST. Kerala has reported that there is no decrease in the sales of or revenue  collection from  Kerala State paper  lotteries after implementation  of  GST.  Punjab  has  reported  that  it  does  not  appear  that  GST  has made any impact on the sale of lottery tickets. West Bengal has reported that there is no reduction in the number of draws of West Bengal Lottery after the implementation of GST, though the ticket sale figures are reported to have reduced.

(c): Yes, Sir. Requests for reduction in GST rate on lottery have been received.

(d): The request for reduction in GST rate on lottery has not been acceded to by the Government. (e): GST rates have been notified by the Government on recommendations of the GST Council.  The  rates  can  be  reduced  on  recommendation  of  the  GST  Council.  As regards steps taken for revival of lottery business, Arunachal Pradesh, Goa, Kerala, Nagaland  and  Sikkim,  have  reported  that  they  have  made  constant  changes    in consultation with the distributors in the lottery schemes and have also launched new lottery  schemes  to  revive  the  lottery  business.  Maharashtra  has  reported  that  to sustain lottery sale volume, numbers of online draws have been increased and lottery schemes have been redesigned.

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