The Turf Authorities of India (TAI), an apex frame of the six racing golf equipment in India made a representation to Union Minister Piyush Goyal on 14th February, 2019 inquiring for for a trade within the Goods and Services Tax (GST) rate this is charged on bets taken through race clubs and bookmakers.
The conglomeration of turf clubs, of their representation to Minister Goyal, (who on the time of the TAI illustration held the Finance portfolio) stated that the 28% GST that is currently being charged at the face price of the bets made and now not on the fee or profits via the membership, which is unfair and ensuing in a huge loss of revenue.
Further, TAI has contended that as consistent with a Supreme Court choice, horse racing and having a bet on it’s been held to be a recreation of talent and exempt from the definition of gambling, consequently the class of horse race having a bet beneath the category of gambling and as an excellent instead of carrier is wrong.
According to TAI, the full taxes paid to various country governments before implementation of GST (within the financial 12 months 2016-17) were Rs. 305 crores whilst the taxes paid in the transition period of GST implementation of 2017-18 become Rs. 186 crores. TAI additionally stated that revenues will steadily slide because of the high tax price in the next years leading to even more decreased turnover of race clubs and much less tax collections for the government.
Apart from the pony racing clubs, the lottery enterprise has also complained that a GST price of 28% at the face price of lottery tickets has lead to a big discount in commercial enterprise and loss of many roles.
In December ultimate yr, the Mumbai police raided and arrested race path bookmakers and lottery parlour proprietors for alleged evasion and non-payment of GST. Tax government have also raided and slapped evasion instances against numerous top lottery advertising and distribution agencies.
