ALL INDIA FEDERATION OF LOTTERY TRADE & ALLIED INDUSTRIES appeal for GST on Margin money

Mumbai 23rd June 2106: A meeting was held in Mumbai to discuss about the impact of GST on the Lottery business and its effect on the unfair tax of 28% on the online lottery. Online Lottery business is catering to a lot of poor, differently abled, handicap, widow and uneducated people in Maharashtra.If the Government imposes GST on face value of Online lottery,it will amount to closure of the trade as it would be very difficult for the lottery operators / distributors to survive.

To sustain Online Lottery business, the Government should take separate decision and levy GST on the Margin of online lottery tickets sale, as Prize winning is already taxed under the Income Tax Act 1961.

It is also stated that the fitment committee of GST Council has recommended levy of GST @ 28% on the margin money and the same view has already been incorporated in the GST Council’s minute book at Page No. 116.

Therefore, keeping in view of the above, it is requested to propose the GST Council to take separate decision for levy of GST on supply of Online lottery tickets on the margin money (i.e. Face Value – Prize Winning).

It is our humble request to the respected Prime Minister and Finance Minister that, in keeping with the interests of lakhs of people directly and indirectly associated with Online lottery business,they may please take a separate decision on levy of GST on supply of Online lottery and the same may be imposed only on the margin money so that, it does not affect livelihood of people associated with the trade.