Thiruvananthapuram: Lotteries from other states are all set to go on sale in Kerala from this month following a favourable verdict from the High Court.
Distributors have approached a few agents stating that the first draw of lotteries from other states would take place on January 18 and that tickets for sale would be delivered soon. The agents have been told that tickets with a first prize of up to Rs 1 crore will be sold for Rs 30. The state government has directed the GST department to address the situation.
The lottery department now receives a profit of 4% of the turnover from lottery sales. In addition, the government receives 14 per cent of the 28 per cent paid as GST. If lottery operators from other states come to Kerala, they will have to pay 28 per cent as GST to the state government. The government claims that a lottery cannot be run profitably by offering attractive prizes when such a large amount has to be paid as GST.
Kerala records the highest number of lottery ticket sales in the country. Even during the spread of COVID, more than a crore tickets are being sold daily. This is what is attracting lotteries from other states to Kerala.
The Kerala Bhagyakuri Samrakshana Samara Samithi (lottery protection committee), a consortium of trade unions in lottery sales, has asked agents not to sell lotteries from other states.
Will control sale of lotteries from other states: Thomas Isaac
Minister TM Thomas Isaac said the High Court had quashed only the part added to the Paper Lottery Act and that the sale of lotteries from other states would be controlled using the other provisions of the Act.
An appeal will be filed in the Division Bench on Monday against the High Court judgment quashing rules 24 (3) and 24 (10) of the Lottery Act. Any attempt to take advantage of the court order and carry out trade in Kerala will be prevented, he said.
Lottery falls in the category of goods under the GST Act. Lotteries from other states are registered with the Central GST Department, but they will be checked for compliance with state GST rules and regulations. The state will also see whether the provisions of the Centre’s Lottery (Regulation) Act are being complied with.
The government will take steps to make Kerala lottery attractive, he said.
He blamed the BJP for helping the lottery mafia and said that the decision of the GST Council to unify the double taxation had helped them.
