NEW
DELHI: The Supreme Court on Friday held that state governments cannot levy tax
on the sale of lottery tickets. A five-judge Constitution Bench, headed by
Justice Ruma Pal, overruling a 1986 judgement of the apex Court, said sale of
lottery tickets cannot be equated with sale of goods and hence tax cannot be
imposed.
Delivering the
judgement on a bunch of petitions challenging the levy of sales tax on lottery
tickets, the Bench said its order would be effective from today. The Supreme
Court in 1986 had held that tax could be levied on sale of lottery tickets.