Lottery Hopes Fading? State Govt Battles to Cushion 40% GST Blow

The state government has found itself in a fix as the Centre has included its state-run lottery under the 40% GST tax slab.

- JOSE K JOSEPH @T'Puram

The move will force the government to either reduce the commission paid to agents or lower the prize money.

Sources confirmed the government is not planning to increase the ticket price as that would impact the sector. Unlike the gambling casinos in Goa, the Kerala lottery provides livelihood and welfare to around two lakh people, but it has fallen under the Centre's 'sin goods' category. With the new tax regime set to come into effect from September 22, the state is running out of time to find a quick-fix solution.

While lotteries have been a major revenue-generation source for the government, hundreds of people, especially the physically challenged, rely on selling these tickets for livelihood. The state government feels lottery should not be treated like other gambling activities.