Supreme Court upholds levy of GST on lottery, gambling

• A plea filed in SC seeks that lottery cannot be regarded as ‘goods’ within the meaning of the Central Goods and Services Tax Act, 2017(CGST Act).

Key highlights:

• Definition of ‘goods’ under Article 366(12) of the Constitution include only “materials, commodities and articles” and not “actionable claims”.

• Actionable claim means a claim for any debt which is related to any benefit arising out from any movable property which is not in possession and for which relief can be claimed in civil court.

• It was argued that ‘lottery’ was in the nature of an actionable claim.

• The Act is discriminatory (Article 14) as all actionable claims except ‘lottery, betting and gambling’ have been exempted from GST.

• SC observed that definition of goods under Article 366(12) of the Constitution was inclusive and there was no intention to give any restrictive meaning to goods.

• When the Parliament has been conferred power to make law with respect to goods and services, the legislative power of the Parliament is plenary.

• GST Act 2017 was enacted by the Parliament in exercise of power conferred under Article 246A of the Constitution.


Mains Paper 2: Polity

Prelims level: CGST Act

Mains level: Key highlights of the supreme court judgements

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