Saturday, August 13, 2022

Kerala High Court vetoes state GST lottery provisions

A provision that would require agents and distributors of state lotteries to provide information relating to lotteries sold and names of winners to Kerala tax agents has been struck down by the state’s High Court, local media reports.

Provisions in the State GST rules also previously allowed tax officials to make a call on whether the lottery was conducted in accordance to the Lotteries Act.

On Friday, Justice A. Muhammed Mustaque held that the government had no legislative competence to formulate such rules, striking down the provisions.

Justice Mustaque’s decision follows a previously filed writ petition by the agents of Mizoram lotteries, which argued that tax officials had no power to decide whether a lottery was conducted in compliance with the Lotteries (Regulation) Act.

The court observed that the police would not be able to act merely based on information given by tax officials when it came to potential breaches of the Act.

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