The Turf Authorities of India (TAI), an apex body of the six racing golf equipment in India made a illustration to Union Minister Piyush Goyal on 14th February, 2019 requesting for a exchange in the Goods and Services Tax (GST) fee this is charged on bets taken with the aid of race clubs and bookmakers.
The conglomeration of turf clubs, of their illustration to Minister Goyal, (who on the time of the TAI representation held the Finance portfolio) stated that the 28% GST this is presently being charged at the face value of the bets made and now not on the commission or earnings through the membership, which is bigoted and ensuing in a massive loss of sales.
Further, TAI has contended that as in line with a Supreme Court choice, horse racing and betting on it has been held to be a game of talent and exempt from the definition of gambling, consequently the category of horse race having a bet below the class of playing and as an excellent in preference to service is inaccurate.
According to TAI, the total taxes paid to numerous country governments before implementation of GST (inside the economic year 2016-17) had been Rs. 305 crores while the taxes paid inside the transition period of GST implementation of 2017-18 become Rs. 186 crores. TAI additionally said that revenues will progressively slide due to the excessive tax rate in the next years leading to even extra reduced turnover of race clubs and less tax collections for the authorities.
Apart from the pony racing clubs, the lottery industry has also complained that a GST price of 28% at the face price of lottery tickets has cause a huge discount in business and lack of many roles.
In December remaining 12 months, the Mumbai police raided and arrested race path bookmakers and lottery parlour owners for alleged evasion and non-price of GST. Tax authorities have additionally raided and slapped evasion instances in opposition to several pinnacle lottery advertising and distribution businesses.
