Lottery Distributors Exempted from Paying Service Tax, According to Supreme Court Decision

The Supreme Court of India, in a landmark ruling made on Tuesday, has decided that lottery distributors are not liable to pay service tax to the Union government. The judgement, delivered by a bench comprising Justices BV Nagarathna and NK Singh, overturns an earlier appeal filed by the Centre.

The ruling was made in relation to an appeal against a judgement made by the Sikkim High Court. However, it is important to note that the ruling by the Bombay High Court on the same issue remains separate and distinct.

The Supreme Court's decision dismisses the Centre's challenge to the Sikkim High Court's judgement, a move that has brought relief to lottery distributors across the country. The authority responsible for the obligation of lottery distributors to pay a tax rate to the central government, as per the Central Board of Direct Taxes (CBDT) under the Ministry of Finance, was not mentioned in the ruling.

In a separate development, the Bombay High Court criticized a state for its inaction during the Maratha protest. The Maratha protest, which took place in Antarwali Sarati Village, was the subject of the ruling by the Bombay High Court. The court did not specify which state was being criticized for inaction. A massive celebration erupted in Antarwali Sarati Village following the ruling, in response to the ruling on the Maratha quota issue.

The location of the Supreme Court's ruling was New Delhi, while the ruling by the Bombay High Court was made in Mumbai. The Supreme Court's judgement pertains to the liability of lottery distributors to pay service tax to the Union government, but it did not directly address this liability.

This ruling by the Supreme Court of India is expected to bring clarity and certainty to the tax obligations of lottery distributors, providing much-needed relief in the sector. As always, it is advisable for businesses to consult with tax experts to understand the implications of this ruling for their specific circumstances.

Lottery Distributors Exempted from Paying Service Tax, According to Supreme Court Decision