SC Upholds Levy Of GST On Lotteries, Betting, Gambling

Upholding the validity of provisions under Central Goods and Services Tax Act, 2017, the bench dismissed a plea challenging the provisions as violation of right to equality

NEW DELHI: In a significant verdict, the Supreme Court Thursday held that the levy of Goods and Services Tax (GST) on lotteries, betting and gambling does not amount to hostile discrimination and is not violative of right to equality under the Constitution.

Upholding the validity of the provisions under the Central Goods and Services Tax Act, 2017 empowering authorities to tax lotteries, a bench headed by Justice Ashok Bhushan dismissed a plea of Skill Lotto Solutions Pvt Ltd, an authorized agent for sale and distribution of lotteries organized by Punjab government.

The firm had sought setting aside the definition of goods under Section 2(52) of the Central Goods and Services Tax Act, 2017 and consequential notifications to the extent it levies tax on lotteries and had sought a declaration that the taxing of lottery was discriminatory and violative right to equality and practice profession under the Constitution.

We are of the view that definition of goods under Section 2(52) of the Act does not violate any constitutional provision nor it is in conflict with the definition of goods given under Article 366(12). Article 366 clause(12) as observed contains an inclusive definition and the definition given in Section 2(52) of Act, 2017 is not in conflict with definition given in Article 366(12).