Kerala Lottery Big News: Will Govt Hike GST Rate From 28 To 40% On Lotteries In September 2025?

There are various lotteries either offered or authorized by the states in India. As part of its welcome program, Kerala state also runs and authorizes legal lotteries for its citizens. These lotteries are divided into two categories, weekly and seasonal, offering minimum first prizes of Rs 1 crore and as high as Rs 25 crore. However, as per the latest news, the government is likely planning to increase the GST rates on lotteries to 40% from the current 28%, a move that could impact the livelihood of over 2 lakhs lottery agents, vendors and their families.

GST Rates On Kerala Lotteries:

Currently, there are two types of GST rates imposed on Kerala lotteries. First is 12% GST, which is applicable on lotteries that are organised by the Kerala state government. Then there is a higher GST rate of 28% which is imposed on lotteries that are authorised but not organised by the Kerala state.

These GST rates have been in place since 2019. However, following this, the prices of lottery tickets surged from Rs 30 to Rs 40 and further to Rs 50. As per reports, the surge in the cost of lotteries had also affected ticket sales at that time, and fear of a similar impact is expected if GST rates are hiked to 40% in September 2025.

GST Rates Hike On Kerala Lotteries?

During his 79th Independence Day Speech, Prime Minister Narendra Modi announced the proposal of a significant revamp in GST norms, which will focus on structural reforms and rate rationalisation and enable ease of living for the common man.

The GST council is expected to meet on September 3rd and September 4th, to discuss proposals for revamping GST rates. As per reports, under the restructure of GST rates, the council may reduce the number of goods and services tax rates from the current 0%, 5%, 12%, 18% and 28%. It is expected that the council may only keep 5% and 18% GST slabs, but to compensate for the tax losses from eliminating other GST rates, they could introduce a higher GST rate of 40% on items like tobacco, online real-money gaming, and lottery.

These reports have already sent a shockwave through the lottery community and the buyers.

On August 29th, Kerala Lottery Protection Committee, led by CPI(M) leader M.V. Jayarajan and comprising MPs, urged Finance Minister Nirmala Sitharaman in a petition to drop the plan for hiking GST rates on lotteries.

Finance Minister K.N. Balagopal explained that the GST rate hike to 40% from 28% on lotteries could impact the Kerala State Lotteries. It would affect over two lakh lottery agents and vendors and their families. He pointed out that lakhs of livelihoods depend upon lottery sales. The hike to 40% GST could result in a decline in the commission on the sale of a Rs 50 lottery ticket by Rs 4 for agents.

Instead, Jayarajan suggested that GST rates on lotteries should be brought under the 18% slab.

Kerala Karunya Fund To Impacted:

As per reports, Karunya Benevolent Fund, which offers free medical aid for underprivileged sections of society, could also be impacted due to the GST hike. Currently, the Karunya Fund is run by the Kerala state lottery department.

As per the Kerala Kaumudi report, lottery sales are the main source of income and the livelihood of lakhs of people. Lottery sales worth about Rs 14,000 crore happen annually. The government earn about Rs 3,000 crore in taxes and Rs 450 crore in profits. Benefits such as medical assistance, post-death family assistance, education assistance, maternity assistance, Karunya, and assistance to the differently-abled are also distributed through this. All this will stop if the lottery business is in crisis.

Kerala Lottery Result On 30-08-2025 For Karunya KR-721:

The Karunya lottery with the code 'KR' is part of Kerala's weekly lotteries and the lucky draw is announced every Saturday. The first prize winner gets Rs 1 crore. On August 30, the Kerala state announced the Karunya KR 721 result in the series of KA, KB, KC, KD, KE, KF, KG, KH, KJ, KK, KL, KM.

Kerala Lottery Date of Draw: 30/08/2025 Karunya KR 721 Winners Numbers

1st Prize: Rs 1 Crore - KN 541229

2nd Prize: Rs 25 Lakh - KW 278628

3rd Prize: Rs 10 Lakh - KT 320628

Here are the Kerala Weekly Lotteries: