New Delhi: Rebuffing the opposition of seven states including Kerala, the GST Council has decided to unify the tax on lotteries at 28 percent.
The new rates will come into effect as of March 1, 2020. Kerala will suffer the annual loss to the tune of rupees 600.
However, the council for the time being hasn’t raised GST for products and services.
For the first time in its 38 meetings so far, the council made the decision on lottery through voting.
Aside from Kerala, Maharashtra, Punjab, Delhi, Puducherry, Madhya Pradesh and Bengal voted against the unification. Rajasthan and Punjab didn’t participate in voting.
However, 21 states voted favouring the uniform rate. Half the increased rate of GST will got to Centre.
The upward revision of tax will adversely affect sales of Kerala lotteries.
The decision to uptick the GST on lottery comes as one-two punch for Kerala, which is reeling under a debt of 20,000 crore following the floods.
Talking to media, Kerala’s Finance minister Thomas Isaac warned lottery mafia against using uniform rate by them as a cover up to enter the state.
He also said the Kerala would approach the court against the Centre’s decision.