New Lottery Tax in India
Breaking News: New Favorable Lotto Tax Rate!
One of the best news for Indian lotteries in a long while has just been released! After years of discussion, the Goods and Service Tax council decided to add a new tax rate to lotteries. It was decided on the 18th of December, 2019, and is a fixed uniform tax rate of 28%.
The new tax rate will come into place on the first of March, 2020 and will be applied to the following lotteries:
Sadly it is not quite what lottery distributor representatives wished for as they had previously asked for a maximum tax of 20%.
Yet this is significantly better than the current tax structure that was in place so, in my opinion at least, this a step in the right direction.
The current tax structure is extremely complicated. You need to either file lottery winnings as an income from another source or pay the current lottery GST of 40%. It all depends on which lottery you play and can easily be mixed up.
Since the new tax will cover all lotteries you never need to worry about where or how to file your winnings in the future.
The best argument for getting rid of the previous tax structure was the diminishing sale of official lottery tickets, the increasing number of illegal lotteries and solving the previously complicated structure.
It has been seen by some as unfavourable to play lotteries due to the high taxes on winnings. Indian players want to win more which can make illegal tax free lotteries attractive.
What most players don’t know is that often they have zero chances of winning these lotteries. Unlicensed illegal lotteries almost always cheat players of out their wins and promise prizes that don’t exist.
Other players have also avoided playing lotteries since the tax rate can be unclear from time to time which in turn reduced the sale of tickets.
The new tax rate is intended to solve all these issues and is a sign of the government’s approval of both state and international lotteries. This in hand clears out any issues if online international lotteries are legal in India.
I have previously written an article explaining why online lotteries are legal in India. The main reason is because of old laws that don’t quite cover online lotteries leading to legality through a grey zone.
This new lotto tax law is a sign of the governments’ approval of online international lotteries. As online lotteries are private and private games are illegal in India this new tax rate can also be applied to international lotteries. This means that the government have given their consent to play online.
So if you have ever worried about playing international lotteries (even though there is nothing to worry about) you can now be 100% sure that you can enjoy them carefree.
The consequences of this new Indian lottery tax reform are very simple. As of the first of March 2020, you will receive more money when winning a lotto prize.
I see this is the first step in the Indian governments’ acknowledgement of international lotteries as a safe form of entertainment for its citizens. In the future, it is possible that will see reforms in the laws that are currently unclear regarding online international lotteries.
This makes me super positive for the future of online lotteries in India. We will have more chances of enjoying and hopefully winning the best lottery jackpots available online!
If you now feel ready to enjoy safe and secure online lotteries you can check out my three favourites below!