Thiruvananthapuram: The popular state-run lottery sector in Kerala is grappling with an unexpected financial crisis following recent Goods and Services Tax (GST) revisions. To mitigate the higher tax burden, State Finance Minister K.N. Balagopal has implemented sweeping cuts across prize pools, agent commissions, and distributor discounts, a move that has sparked concern among the thousands of agents who rely on the scheme.
The Finance Minister confirmed that the government was compelled to recalibrate the financial structure of the lottery to absorb the increase in GST rates without destabilising the state’s key revenue stream. This readjustment primarily targets the three main cost components: the prize money itself, the agent’s commission (referred to as ‘agent price’), and the general discount structure.
The restructuring involves specific cuts to agent remuneration. The overall agent discount has been reduced by a uniform one percentage point (1%). Furthermore, the financial cuts extend to the agent price linked to winning tickets. Agents will see a three percent (3%) reduction in the agent price for all winning amounts, excluding the ₹100 prize category. For the lowest common prize—the ₹100 winning ticket—the reduction in the agent price is even more significant, standing at five percent (5%).
These measures, while designed to protect the state exchequer from the full force of the GST hike, translate directly into reduced earnings for lottery agents, who form a crucial part of the state’s economic landscape. The move is expected to put significant financial pressure on the sales network and stakeholders are now waiting to see the long-term Kerala Lottery GST Impact on ticket sales and agent viability.
