Economy

Government to Introduce Lottery Offers Under GST

The government intends to launch lottery offers ranging between Rs 10 lakh and Rs 1 crore under GST to motivate customers to ask for bills when they make purchases. John Joseph, a member of the Central Board of Indirect Taxes and Customs (CBIC), said that every bill under GST would give customers a chance to win a draw and that would serve as an incentive to pay the tax.

As per the new lottery system, a purchase bill would be saved on an online portal, a draw will occur automatically, and the winners will be intimated accordingly. The GST Council, chaired by the Finance Minister Nirmala Sitharaman along with a panel of other state counterparts, will vet the proposed lottery scheme.

Also, the council will determine the minimum threshold for bills to be added in the lottery. According to the plan, the funds required for the lottery would come via the consumer welfare fund, where the anti-profiteering proceeds are moved.

Also Read: Government is Looking at a Single GST Rate for All Lotteries

The government is also considering various other options in business-to-consumer deals in order to plug leakages in GST revenue; this includes incentivizing QR Code-based transactions and lotteries. The government has set up a committee of officers to propose measures to increase the collection of GST revenue.

The panel has been asked to recommend systemic changes in GST, which includes checks and balances to avoid abuse and to strengthen voluntary compliance measures. It was also assigned with a task to provide information on steps to be undertaken to increase the tax base.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in.

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