The government has constituted an eight-member ministerial panel to study and resolve issues that are hurting the lottery business in the country as a result of implementation of the Goods and Services Tax (GST).
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Currently, GST on lotteries run by state governments is 12% while those operated by private distributors is 28%, the highest possible rate. The Centre wants to charge both at the maximum rate while states are keen on maintaining the distinction.
The panel has set six terms of reference which  the question of whether the two kinds of lotteries should attract the same rate of tax.The members will also suggest remedial steps if private distributors are found to be misusing the lower GST rate and hence evading taxes.
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Maharashtra Finance Minister Sudhir Mungantiwar is the convener of the panel. Other members of the panel are finance ministers of Kerala, West Bengal, Assam, Punjab and Karnataka, Goa’s minister of panchayat and Arunachal Pradesh’s minister of taxes and excise.
The panel will submit its findings and recommendations at the next meeting of the GST Council.
