Kerala Lottery GST Hiked to 40% from Sept 22

Speedy Summary

• The GST rate for lottery tickets will increase from 28% to 40% effective Monday, September 22, based on revised GST slabs approved by the GST Council on september 3.
• Lottery tickets are now classified under a new tax slab of 40%, alongside items like cigarettes, beedi, gutka, and pan masala.However, the higher rate for these items has not yet been enforced and will require a separate notification.
• Kerala government opposed the increased tax rate for lotteries due to its potential impact on ticket sales and livelihoods tied to the State’s lottery ecosystem. kerala urged the Center to let States set their own tax rates for lotteries.

Indian Opinion Analysis

The increase in GST on lottery tickets reflects ongoing efforts at revenue generation but highlights important concerns. States like Kerala rely heavily on income from lotteries both as a direct source of state revenue and as an economic lifeline for manny workers engaged in its sales. A steep rise in taxes may discourage consumer participation, reducing overall ticket sales and impacting state revenues as well as those dependent upon this sector economically.

Kerala’s appeal to set jurisdiction-specific rates signals a broader debate over centralization versus federal flexibility within India’s taxation system. While uniform taxation is essential under GST’s framework, this issue underscores how centrally imposed changes can disproportionately affect states with unique economic dependencies-potentially leading future necessities for tailored approaches or compromises in similar cases.

Read more: Published – September 21, 2025