WRIT PETITION DISMISSED BY SUPREME COURT WITH REGARD TO LEVY OF TAX IN LOTTERY

WRIT PETITION DISMISSED BY SUPREME COURT WITH REGARD TO LEVY OF TAX IN LOTTERY

4^TH DECEMBER

The Hon’ble Supreme Court dismissed a Writ Petition filed by Skill Loto Solutions Pvt Ltd seeking a declaration that the levy of tax on the lottery is discriminatory and violative of Articles 14, 19(1)(g), 301 and 304 of the Constitution of India.

The petitioner in the present writ petition is an authorized agent for the state of Punjab for the sale and distribution of lotteries organized by the State of Punjab. After enacting the Central Goods and Services Tax Act, 2017, Notification was issued by the Government of India dated 28.06.2017 in the exercise of the power conferred by sub-section (1) of Section 9, notifying the rate of the integrated tax. 

In the aforesaid notification, it was contended that concerning lottery run by the State Government, the value of supply of lottery was deemed to be 100/112 of the face value of the ticket or the price as notified in the official gazette of the organizing State, whichever is higher.