Legal & Regulatory

GST Council seeks Attorney General’s opinion on dual tax rate for lotteries

The Goods and Services Tax Council (GST) in its 35th meeting held on 21st June, 2019 once again failed to arrive at a consensus on whether a standard rate of GST should be charged on state-run and state-sponsored lotteries and it was decided that the Attorney General of India should give his opinion on whether a dual tax structure for lotteries can be continued.

An official press release issued by the government about the GST council meeting states that the ‘Group of Ministers (GoM) on Lottery submitted report to the Council. After deliberations on the various issues on rate of lottery, the Council recommended that certain issues relating to taxation (rates and destination principle) would require legal opinion of Learned Attorney General.’

The timelines by which the Attorney General will submit his opinion and whether the issue will be decided in the next GST Council meeting remains to be seen.

Currently, 12% GST is being charged on lotteries sold by state governments directly, while a 28% tax rate is being levied on the face value of lottery tickets authorised by state governments but sold through private lottery distributors.

The Kerala legislative assembly and state finance minister TM Thomas Isaac have staunchly opposed any move to reduce the 28% tax currently applicable on lotteries sold by the private distributors on behalf of the state government, claiming that any move to reduce taxes on private companies would encourage ‘lottery mafia’ in Kerala.

Read more about taxes and laws on gambling in India.


Kerala state lotteries – types, tax, prizes, and prices

Kerala State Lotteries is a lottery program organised by the state government of Kerala.

Lottery is a type of gambling in India, in which tickets with different number combinations are purchased by participants, and numbers are drawn at random from a pool to announce the winners.

In this article, read about Kerala state lottery:

In the year 1967, when all the private lotteries were banned, the then Finance Minister of the state, P. K. Kunju Sahib, proposed the idea to set up a Lottery department under the Government of Kerala. The objective behind this was to generate employment and supplement the state’s revenue.

The Lottery department was earlier placed under the Department of FInance, but was later moved under the Department of Taxes.

After the success of this model, some other states in India also adopted it and launched their own state lotteries.

The Directorate of the department is located in Vikas Bhawan at Thiruvananthapuram. It has 14 district offices and a Regional Deputy Directorate at Ernakulam.

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Types of Kerala State Lotteries

There are seven different types of weekly Kerala lottery draws conducted by Kerala State Lottery Department. They have different price and prize sturcutures.

Kerala state lottery Pournami has the first prize of Rs. 70 lakhs, the second prize of Rs. 5 Lakhs, the third prize of Rs. 1 Lakh, and a consolation prize of Rs. 8000. The price of a single ticket of the lottery is Rs. 30 and that of a book is Rs. 750. The draw for Pournami Kerala lotteries are held on Sunday.

Kerala lottery called Win Win has the first prize of Rs. 65 lakhs, the second prize of Rs. 10 Lakhs, the third prize of Rs. 1 Lakh and a consolation prize of Rs. 8000. The price of a single ticket of the lottery is Rs. 30 and that of a book is Rs. 750. The draw for Win Win Kerala lotteries are held on Monday.

Kerala state lottery Sthree Sakthi comes with the first prize of Rs. 60 lakhs, the second prize of Rs. 5 Lakhs, and a consolation prize of Rs. 8000. The price of a single ticket of Sthree Sakthi is Rs. 30 and that of a book is Rs. 750. The draw for Sthree Sakthi Kerala lotteries are held on Tuesday.

Akshaya Kerala lottery has the first prize of Rs. 60 lakhs, the second price is Rs. 50 lakhs, and the third price is Rs. 1 lakh. The consolation prize of the lottery is Rs. 8000. The price of s single ticket is Rs.30 and that of a book is Rs. 750. Kerala state lotteries Akshaya are drawn on Wednesday.

Karunya Plus Kerala lottery has the first prize of Rs. 80 lakhs. Its second prize is for Rs. 5 Lakhs and the third prize is for Rs. 1 Lakh. The consolation prize for Karunya lottery is Rs. 8000. The price of a single ticket of this lottery is Rs. 40 and that of a book is Rs. 1000. Karunya Plus Kerala lottery draw is held every Thursday.

Nirmal Kerala State lottery has the first prize of Rs. 60 lakhs. The second and third prizes for this lottery are Rs. 5 Lakhs and Rs. 1 Lakh, respectively. Its consolation prize is Rs. 8000. One can buy its single ticket for Rs. 30  and the entire book for Rs. 750. The draw for Nirmal Kerala lotteries is held on Friday.

Karunya Kerala state lotteries carry the first prize of Rs. 80 lakhs, the second prize of Rs. 10 Lakhs, the third prize of Rs. 1 Lakh, and a consolation prize of Rs. 8000. Participants can buy a single ticket for Rs. 40 and a full book for Rs. 1000. The draw for Kerala state lotteries Karunya is held on Saturday.

Besides the prizes mentioned above, there are other prizes ranging from Rs. 100 to Rs. 5000, for the above lotteries.

The state department also hosts festive Bumper lotteries like Xmas (for christmas), Vishu, Thiruvonam (for Onam) and Pooja (for Dussehra), and seasonal jackpots like Summer and Monsoon lotteries.

In the year 2017, a Kerala driver won the Onam bumper lottery of Rs. 10 Crores.

All the above kerala lotteries combined make for the biggest cash flow in the state.

Related Posts:
August 1, 2017 – Kerala government asks centre to ban Mizoram lotteries, arrests lottery agents

July 29, 2017 – Kerala FM dubs Mizoram lotteries illegal

December 12, 2010 – Rs. 7,000 crore illegal lottery scam exposed

Kerala State Lottery Results

The live kerala state lottery result is announced at 3 PM every day at Sree Chithira Home Auditorium, Thiruvananthapuram.

To check the lottery results online, one can visit, 4 pm onwards. The results are also published in Kerala Government Gazette.

For prize money less than Rs. 5000, one can claim the money from any lottery shop in the state after verifying the Kerala lottery numbers from the Gazette. For any amount above Rs. 5000, winners need to submit the winning lottery ticket at a bank or government lottery office with an ID proof, within 30 days of the draw. Read about the documents required to claim a prize.

To check the Kerala state lottery results today, participants can visit the Kerala State lottery website after 4 pm.

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June 5, 2014 – Kerala High Court directs payment of prize money to Mumbai lottery winner

How much tax will you pay on winning a Kerala State lottery

If you win a Kerala state lottery, the prize money will be taxable under the head ‘Income from other Sources’.

When your winning is above Rs. 10,000, TDS of 30% will be automatically deducted from your earning under Section 194B of the Income Tax Act, 1961 and you will receive the balance, as per section 194B. The prize distributors are responsible to deduct this tax amount before giving any prize money to the winners.

One may note that no deduction under Sections  80C or 80D is allowed from this income.

Related posts:
January 17, 2019 – Government notifies 8-member committee to decide lottery GST rates; panel to submit report by next GST Council meeting

January 14, 2019 – No decision taken on GST rate reduction on lotteries; matter referred to GoM

January 3, 2019 – GST council to decide on lowering tax rate for lotteries on 10th January

June 25, 2017 – Kerala FM hails GST rate on lottery tickets, private operators federation expresses unhappiness