The Kerala government strongly opposed the steep hike in lottery prices, arguing that it would cause a decline in sales and affect nearly two lakh people dependent on the sector.
Published Sep 22, 2025 | 9:32 AM ⚊ Updated Sep 22, 2025 | 9:32 AM
Lottery tickets on display at a store in Kerala. (iStock)
Synopsis: The GST on lottery tickets will rise from 28 percent to 40 percent, according to the Kerala State GST department. he hike follows the GST Council’s 3 September decision, which placed lotteries in the 40 percent tax slab.
With the new tax slabs becoming effective from Monday, 22 September, the GST on lottery tickets will rise from 28 percent to 40 percent, according to the Kerala State GST department.
The department said that earlier reports suggesting no change were incorrect. The hike follows the GST Council’s 3 September decision, which placed lotteries in the 40 percent tax slab of “sin goods” along with cigarettes, beedis, gutka and pan masala.
However, the new rate for these tobacco-related products will be implemented later through a separate notification, so current rates will continue for now.
Meanwhile, the Kerala government strongly opposed the steep hike in lottery prices, arguing that it would cause a decline in sales and affect nearly two lakh people dependent on the sector.
The LDF-led government also appealed to Union Finance Minister Nirmala Sitharaman to let states decide lottery tax rates.
At the same time, the Kerala Cooperative Milk Marketing Federation (Milma) reduced the MRPs of nearly 100 value-added dairy products, reflecting the revised GST rates, effective Monday.
Ghee will now cost ₹675 per litre (earlier ₹720) and ₹345 for 500 ml (down from ₹370) following a tax cut from 12 percent to five percent. Butter has been lowered to ₹225 from ₹240, while 500 g paneer will be ₹234, cheaper by ₹11 after GST removal.
A litre of vanilla ice cream will be ₹196 instead of ₹220, as the tax rate dropped from 18 percent to five percent. GST has also been reduced on flavoured milk (12 percent to five percent), UHT milk (percent to zero), payasam mix (18 percent to five percent), and packaged juices, making them more affordable.
Milma said the revised framework will reduce prices of ghee, butter, and paneer by about seven percent, and ice cream by 12–13 percent, easing consumer costs while boosting cooperative competitiveness.
(Edited by Muhammed Fazil with inputs from Sreelakshmi Soman.)
