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The GST Council’s recent decision to impose 28 per cent tax on the full face value of bets placed in horse racing is a “great disappointment” for the horse racing industry, according to the Turf Authorities of India (TAI).
At its 50th meeting held on July 11, the GST Council imposed a 28 per cent tax on the turnover of online gaming companies, horse racing and casinos.
Commenting on the same, TAI said the GST Council has failed to appreciate the special features of horse racing, distinguishing it from other gaming platforms. TAI said horse racing is a sport recognised internationally and even in India for over 200 years. “It is supervised, organised and regulated by us,” it added.
The horseracing authority further added that attendance at race courses has already been dwindling sharply due to high taxes . “Turnover has dropped by nearly 70 per cent from about ₹17,000 crore to approximately ₹6,400 crore during the post GST period, compared to the period prior to introduction of GST.”
It further said that financial operations at horserace clubs have become unviable in the absence of commensurate revenue.
“Sustenance of the agro veterinary industry generating ₹300 crore per annum and the breeding industry generating about ₹500 crore per annum being at stake in the absence of investment in the sport,” it added.
“Review GST’
TAI has asked the government to review the GST rate to support an agricultural-based industry. “Otherwise, the closure of the entire racing industry in the country is imminent and unemployment on a massive scale is unavoidable,” TAI added.
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