Complaint received regarding new hike in GST on lottery

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West Bengal State Lottery has received a several complaint with respect to change in Goods and Services Tax (GST) rate in lottery . The ticket sellers and agents may need to close down their business from 1st March 2020. As we know that union ministry increased GST rate from 12% to 28% on the lottery and new rate has been implemented from 1st March 2020. Lottery sellers claimed that they are not ready to continue the business as new rate will impose more financial burden on them.

The complaints has been received even though state government provides 30% commission to the agents. They said the commission should be increased to 50% now when they are liable to pay more GST.

For example, earlier the agents used to get ₹300 if they withdraw lottery worth ₹1,000. Out of the commission, the agents used to pay ₹120 as GST, while the remaining ₹180 had been their profit margin. Following the implementation of the new GST rate, the agents now have to pay ₹280 if they withdraw lottery worth ₹1,000.

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