Supreme Court On Taxing of Lotteries.
~Preet. In a recent decision, the Supreme Court ruled that a state legislature has the authority to levy taxes on lotteries run by other states within its jurisdiction. Previously, the Karnataka High Court ruled that substantial provisions of the Karnataka Police (Amendment) Act, 2021, which prohibited internet gambling and skill-based gaming platforms, were unconstitutional. The Supreme Court ruled in 2020 that lottery, gaming, and betting are taxed under the 2017 Goods and Services Tax (GST) Act. The decision was made in response to appeals filed by the governments of Karnataka and Kerala against decisions of their respective High Courts to overturn laws enacted by their legislatures to tax lotteries organised and promoted by the states of Nagaland, Arunachal Pradesh, Sikkim, Manipur in Kerala, and Karnataka. The High Courts ruled that the two states' tax rules were unlawful and unconstitutional, and ordered Kerala and Karnataka to repay the money received as tax from lotteries