Centre approves levy of 28% GST on lotteries from March 1, rate notified

    The revenue department notified the GST rate on supply of lotteries and amended its earlier Central Tax (Rate) notification

    A 28 per cent Goods and Services Tax (GST) will be levied on lotteries from March 1, according to a notification.

    The GST Council had in December last year decided to impose a single rate of 28 per cent on state-run and authorised lotteries.

    The revenue department notified the GST rate on supply of lotteries and amended its earlier Central Tax (Rate) notification.

    Accordingly, the Central Tax rate for supply of lotteries has been amended to 14 per cent and a similar percentage will be levied by the states.

    This will take the total GST incidence on lotteries to 28 per cent.

    “This notification shall come into force on the 1stday of March, 2020,” the revenue department notification said.

    Currently, a state-run lottery attracts 12 per cent GST, while a state-authorised lottery attracts 28 per cent tax.

    There were demands thata uniform tax rate should be imposed on lotteries following which a group of ministers were set up to suggest the GST rate. Following this, the GST Council in December voted for a single rate of 28 per cent on supply of lotteries.

    AMRG & Associates Senior Partner Rajat Mohan said: “Gambling in the form of Lottery has been allowed in a few states, where it has penetrated at grass root levels, now changing the tax rate from a prospective date would help the dealers in effectively implementing the new tax rate”.

    EY Tax PartnerAbhishek Jain said a uniform rate on lottery brings a parity between state-run and authorized lotteries; thereby aligning an equal footing for businesses in the same line.

    Source- Business Standard.

The post Centre approves levy of 28% GST on lotteries from March 1, rate notified appeared first on GST Station.



Click here for more...
from #Bangladesh #News aka Bangladesh News Now!!!

Comments

Popular posts from this blog

Caution Compliance Companies continues to con Florida corporations

GST ON TOUR OPERATORS AND AIR TRAVEL AGENTS

Consequences of incorrect invoice details uploaded while filing GSTR 1