Maharashtra lottery sellers to go on strike to protest 28% GST

Private lottery sellers in the state of Maharashtra will be putting up the “Closed” sign next week as part of their protest against the implementation of the Goods and Services Tax (GST) in India.

In June, the GST Council announced a dual tax rate for lottery tickets under the new indirect tax regime, which went into effect last July 1.

Private lotteries join gambling and race club betting in the 28 percent tax bracket, along with other “luxury” services such as cinemas and five-star hotels, while state-run lotteries are charged a 12 percent GST rate. Union Finance Minister Arun Jaitley said the GST would be charged on the face value of the lottery tickets, not on the margin retained by the government or private distributors.

The new tax regime has many lottery sellers up in arms.