{"id":7376,"date":"2018-10-23T12:31:50","date_gmt":"2018-10-23T07:01:50","guid":{"rendered":"https:\/\/www.hostbooks.com\/in\/?p=7376"},"modified":"2020-02-25T11:38:07","modified_gmt":"2020-02-25T06:08:07","slug":"lottery-actionable-claim-liable-gst-upholds-levy-differential-tax-calcutta-hc","status":"publish","type":"post","link":"https:\/\/www.hostbooks.com\/in\/hb\/blog\/gst\/news-and-updates\/lottery-actionable-claim-liable-gst-upholds-levy-differential-tax-calcutta-hc\/","title":{"rendered":"‘Lottery’ an Actionable Claim, Liable to GST, Upholds Levy of Differential Tax: Calcutta HC"},"content":{"rendered":"

Source: TaxGuru<\/a><\/p>\n

\u2022 HC held that lottery can be taxed under Central CGST Act as well as West Bengal (WB) GST Act, 2017 while rejecting assessee\u2019s plea that lottery is neither \u2018goods\u2019 or \u2018service\u2019 under said Acts;<\/p>\n

\u2022 Relying upon SC ruling in Sunrise Associates wherein it was held that the distinction drawn in H. Anraj between the chance to win and right to participate in the draw was unwarranted, held that, \u201clottery is an \u2018actionable claim\u2019 and goods or moveable property\u201d;<\/p>\n

\u2022 Referring to various judicial precedents, stated that \u201cLegislature enjoys a very wide latitude in classification for taxation\u201d and \u201cThe State is allowed to pick and choose districts, objects, persons, methods and even rates for taxation if it is done reasonably\u201d;<\/p>\n

\u2022  Further opined that \u201cIt has not been substantiated that, either the Central or the State Legislatures have exceeded their jurisdiction in promulgating any of the Acts governing goods and services\u201d;<\/p>\n

\u2022  Moreover, It has not been substantiated that, State Legislature while promulgating WB GST Act, 2017 did not have the competence to pass a law or that it violated any fundamental or any other right of the assessee or any provision of Constitution;<\/p>\n

\u2022  HC stated that Entry 6 of Schedule III of CGST Act, 2017 which deals with activities or transactions which shall be treated neither as the supply of goods nor services takes out \u2018actionable claims\u2019 other than a lottery, betting and gambling from the scope of such Act;<\/p>\n

\u2022  Consequently since definition of \u2018goods\u2019 in Article 366(12) of Constitution allows Legislatures to classify lottery as \u2018goods\u2019 and charge tax thereon and since, lotteries are kept out of purview of \u2018actionable claims\u2019 which do not attract GST<\/a>, lottery can therefore be charged to tax under CGST\/WB GST Act, 2017;<\/p>\n

\u2022  Moreover, upheld differential levy of tax in respect of lottery, while stating that it was after extensive deliberations that GST Council in its 17th meeting approved rates and resolution was carried by the requisite majority;<\/p>\n

\u2022  However, HC remarked that, where, a resolution adopted in Council meeting is substantiated to be breaching any fundamental right or provision of the Constitution of India, the same can be adjudicated upon by a Writ Court.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: TaxGuru \u2022 HC held that lottery can be taxed under Central CGST Act as [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":7377,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9267],"tags":[],"yst_prominent_words":[],"_links":{"self":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/7376"}],"collection":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/comments?post=7376"}],"version-history":[{"count":2,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/7376\/revisions"}],"predecessor-version":[{"id":10901,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/7376\/revisions\/10901"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/media\/7377"}],"wp:attachment":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/media?parent=7376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/categories?post=7376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/tags?post=7376"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/yst_prominent_words?post=7376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}