The Kerala government has opposed the Finance Ministry’s plan to increase GST tax rates for lottery to 28 percent from the current 12 percent in the state, according to local reports.
Last week, Kerala Finance Minister Thomas Isaac said that raising the GST on the state lottery to par with lotteries run by intermediaries could potentially open up Kerala to “mafia” lotteries.
In Kerala, the lottery business is run by the state government, which has, up until now, needed only to charge 12 percent GST.
Isaac earlier said keeping the rate lower compared to the intermediaries would protect the state from the private firms entering into Kerala.
Isaac warned the hike in GST, and thus entrance of private firms would result in fraud, and people losing their money.