The Supreme Court recently denied a plea to revisit its decision on a pre-GST tax imposition. It had already overturned the Supreme Court’s decision not to allow states to levy a tax on other states’ lotteries during the pre-GST era (before 1st July 2017).
The Division Benches of the Karnataka and Kerala High Courts had rendered decisions. These benches had noted that the state legislatures of Karnataka and Kerala, respectively, do not allow governments to levy taxes on state-led lotteries held by other jurisdictions, such as Sikkim.
Mr. Justice M. R. Shah and Mrs. Justice B.V. Nagarathna sat on the Supreme Court bench. They considered the appeals filed by the state governments of Karnataka, Kerala, and a few other states against the HC rulings.
According to the HC, respective state legislatures do not have any such clause allowing the taxation of lotteries from other states. The HC further noted that Entry 62 of List II of the Indian Constitution
After analyzing the review petition, the Supreme Court stated that there is no error evident on the face of the evidence to revisit the impugned ruling. As a result of the Supreme Court’s decision, the Kerala Tax on Paper Lotteries Act of 2005 and the Karnataka Tax on Lotteries Act of 2004 were deemed lawful. deals with betting and gambling activities. These also include lotteries, regardless of the corporations that manage them.