Current context: The Department of Revenue, Ministry of Finance has released a notification declaring that the uniform Goods and Service Tax (GST) of 28% will be levied on lotteries from 1st March 2020.
a. 12%
b. 14%
c. 18%
d. 28%
- According to the notification, the GST rate on supply of lotteries has been amended to 14% and a similar percentage will be levied by the states. As a result, the total GST on lotteries will increase to 28%.
- In December 2019, the GST council, led by Finance Minister Nirmala Sitharaman, had decided to impose a single rate of 28% on state run authorised lotteries.
- Currently, a state-run lottery attracts 12% GST, while a state-authorised lottery attracts 28% tax.
- The eight-member group of ministers headed by Maharashtra Finance Minister Sudhir Mungantiwar, was set up to suggest the GST rate on lotteries.
- The committee recommended that the council would decide either on 18% or 28% GST for lotteries.
- The GST Council in December 2019 voted for a single rate of 28% on supply of lotteries.
Question:
Q.1 The Ministry of Finance has announced a uniform Goods and Service Tax (GST) of _______%, which will be levied on lotteries from 1st March 2020?a. 12%
b. 14%
c. 18%
d. 28%
