Thiruvananthapuram, Sep 9 (PTI) Kerala Finance Minister K N Balagopal on Wednesday met trade union leaders representing lottery agents and ticket sellers to discuss the impact of higher goods and services tax (GST) rates on the state-run paper lottery.

The discussions came after the federal government placed paper lotteries under the same 40 per cent GST slab as gambling and casinos.

Until now, the Kerala lottery has been a major source of income for nearly 2,00,000 agents, sellers, and their families, and it enjoys wide public support across the state.

Union representatives told the minister that the steep tax rise could cut ticket sales, hurt the livelihoods of vulnerable workers, and create uncertainty in the printing and distribution of lottery tickets, an official release said here.

The Kerala government had earlier asked the Centre and the GST Council to exempt state-run paper lotteries from the higher tax, arguing that they were not comparable to gambling or casino activity.

It had also sought more time to implement the new rate, but both requests were rejected.

With no relief from the Centre, the state is now exploring ways to soften the blow for sellers and agents, sources said. PTI TGB SSK

GST classification of state-run paper lotteries may reduce ticket sales and threaten livelihoods of agents and sellers. The core issue is the GST reclassification of state-run paper lotteries alongside gambling and casinos, creating a substantially higher tax burden. Kerala argued that state-run lotteries differ from commercial gambling and sought exemption and an implementation delay from the Centre and the GST Council; both requests were denied. Union representatives warned the higher rate will reduce ticket sales, disrupt printing and distribution, and harm agents' and sellers' livelihoods. The state is exploring measures to soften economic impacts on vulnerable workers and the lottery distribution chain.