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Govt earns Rs. 3,950 crores from GST on lotteries

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Data released by the All India Federation of Lottery Trade (AIFLTAI) has revealed that the government has earned Rs. 3,948 crores through Goods and Services Tax (GST) on lotteries for the period July 2017-March 2018.

Out of the nine states that currently permit lotteries, West Bengal has contributed the maximum amount of Rs. 2,150 crores towards GST followed by Kerala which has contributed Rs. 908 crores and Maharashtra Rs. 797 crores (see table below).

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Apart from GST, lottery proceeds of Rs. 1,852 crore have been contributed to state government exchequers for good causes. The Kerala government has mopped up a whopping Rs. 1,691 crores revenue from paper lottery ticket sales. The entire funds generated from sale of Kerala lotteries are utilised for social schemes such as treating cancer patients, providing education to girl child, providing for healthcare facilities etc.

Other state exchequers have not received any substantial revenue from starting lottery schemes as most of the proceeds from lottery sales (apart from payout to winners) is cornered by private lottery companies appointed as distributors or marketing agents by the states.

Table Credit: Economic Times

Currently, a GST rate of 12% is imposed on lotteries organised by the state government which are sold within its jurisdiction, while a 28% tax rate is imposed on lotteries marketed and sold by state governments in other states. Centre and states split the GST revenue received 50:50.

Jay has researched extensively on gaming laws and has been cited by various media houses and journals as an expert. He has helped leading newspapers in their stories on gaming laws. Jay completed his B.A. LL.B. (Hons.) degree from NUJS, Kolkata in 2015 and is currently based out of Mumbai.