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28% tax for lottery across India
Why is it in the news?
- In its 38th meeting, the GST council took up a proposal to fix a uniform 28 per cent tax rate on lottery all over the country.
More in the news
- The GST Council for the first time resorted to voting to decide an issue.
- The controversial issue of the GST rate for lotteries was decided on the basis of voting.
- The Council fixing a uniform tax rate of 28 per cent on both state and private lotteries with effect from March 1, 2020.
- All the earlier decisions by the Council had been taken through consensus.
- The move was a partial defeat for Kerala Finance Minister Thomas Isaac's proposal on whose insistence voting was conducted.
- Present Rates:
(1) Currently, there are dual rates for lotteries- 12% tax on state-run lotteries and 28% on state-authorised, or private, lotteries.
- Other Decision:
(1) The Council decided to exempt the upfront amount payable for long-term lease of industrial or financial infrastructure plots by an entity in which the Centre or state governments have at least 20% ownership.
(2) This exemption is currently available to those where the governments have at least 50 per cent stake. This would promote setting up of industrial and financial parks.
Source
The Hindu.