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The Modi government has placed lottery in the 28% GST bracket and this has sent shock waves in the lottery industry in India. What does it mean? Let’s understand.

The Lottery Business in India:

The lottery business in India is INR 50,000 crore business, which means it is a profitable tax base for the government. The Modi government in India has proposed 28% GST on the lottery companies – players will have to shell out more to buy lottery tickets. At present, the tax on lottery tickets falls in the lowest tax bracket.

How Has the Industry Reacted?

Lottery traders from across the states had staged a protest rally at Azad Maidan in Mumbai. They demanded a reduction of the tax to 12% rather than the exorbitant tax slab of 28%. The protest was held under the Lottery Bachao Mahakruti Samiti. The tax will apply to the sale of lottery tickets that comprised of prize money, government taxes, and even the operator’s margin. This GST has affected the prize payout, which has been reduced to 70% from 90%.

How Will It Affect the Lottery Industry and the People?

Many lottery traders have refuted this tax as illogical. They argued that GST should be levied only on the operator’s margin and the prize money should be taxed under the income tax to be paid by the winner. This 28% GST will have a negative impact on the revenue generated by the state government. Also, many local traders will go out of business. The Kerala government earns a whopping amount of INR 5,500 crore from lotteries alone.

There will also be legal troubles with it as lotteries are not clearly defined either as a product or a service concerning the Goods and Services Tax. Hence, the tax structure has been called irrational. The lottery industry in India employs over 10 lakh people, and many will be out of jobs if this tax is not reduced.

Purchasing lottery tickets will be more expensive for people and the high costs will impact the low to the middle-income group of people.

What Can People Do?

If you are looking to play the lottery and win grand prizes, you can try out online international lotteries. The taxes for the international online lotteries are applicable only on the winning amount. Lottoland is concierge website offering all the major lotteries in the world. It is coming to India soon.

To Sum Up

Indian lotteries are subject to various laws and regulations. You need to stay updated with the amendments in the laws that govern the lottery industry in India and your state. Hence, a more viable alternative is to play the online international lottery. You can visit the Lottoland FAQs to know more about the games, how to play, and more. With online international lotteries, you also have a lot of options to choose from – lotto betting (which have higher odds of winning), scratch cards and more.