Supreme Court Upholds GST On Lottery, Betting and Real Money Gaming

Day before yesterday, on Thursday, the Supreme Court upheld the Goods and Service Tax (GST) to be imposed on the sale of lottery tickets, plus betting and gambling activities.

The bench held by Justice Ashok Bhushan alongside Justices R Subhash Reddy and MR Shah upheld the notification issued under the Central Goods and Services Tax Act, 2017, which brought the lottery and gambling under the GST.

Also Read: Delhi High Court: Treat As Rep PIL Against Online Gaming

The bench likewise dismissed a plea filed by Skill Lotto Solutions which looked to proclaim the toll of GST on the lottery as biased and infringing upon the constitution of India.

Different lottery vendors have contended that the Central government has unfairly grouped the lottery as “goods”. The request contended that the lottery tickets are bits of paper and without any worth.

The candidates featured the practice that sees 12% GST on lotteries sold inside a similar state, however 28% GST available to be purchased of tickets from different states. The Goods and Services Tax Council has recently suggested a uniform tax rate for lotteries.

The judgement observed the following:

“When Act, 2017 defines the goods to include actionable claims and included only three categories of actionable claims, i.e., lottery, betting and gambling for purposes of levy of GST, it cannot be said that there was no rationale for including these three actionable claims for tax purposes. Regulation including taxation in one or other form on the activities namely lottery, betting and gambling has been in existence since the last several decades. When the parliament has included above three for the purpose of imposing GST and not taxed other actionable claims, it cannot be said that there is no rationale or reason for taxing above three and leaving others.”

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