The 'G' curse on Indian Horse Racing

GST, GOVERNMENTS and now GLANDERS

G factor leading to GOOD BYE of Indian races

Meek surrender

 

 40% GST on horse racing related activities {Entrance fees, Bookies stall fees and Betting} came into effect from 22nd September. Transition was lifeless without any murmur or resistance from clubs, as if Turf clubs have resigned to their fate and chose the convenient way of surrender rather than fight

In contrast recently just a few weeks back British Horse Racing authority called for a one day race strike in protest against proposed tax increase from 15 to 21 %. . They vociferously presented the perils of choking the legal way of betting. Prominent racing figures {Breeders and professionals} aired their views thru Social, Print and Electronic Media.  This is how an industry threatened reacts proactively. 

It is said those who stay in glass houses cannot change clothes with lights on!.. Can the clubs be trusted with complete transparency. Just last week there was a news that at Bangalore Turf club winning tickets were punched in the evening after the races!!  Not naming any particular club but it is no secret the blatant mal practices regarding the racing is ignored by the custodians of fair racing .With such blatant acts of dishonesty how can we, the racing patrons, except clubs to take a moral or legal stand against Government's arbitrary decision.  

28% was a severe blow and this 40% is fatal blow. It will become impossible for the owners to stay in game for long.

Racing is taking a full circle. It all started with just one or two days of racing in a week and we are heading towards that scenario again. 

Madras racing will cease to exist after this season, Kolkotta races with hardly 180 horses {many setback cases in that too} will die a natural death very soon, they may conduct races fortnightly from next Monsoon season. Hyderabad race club is rich and can run races on empty stands but they need owners for that who are deserting fast. Rwitc has backing of powerful people, they may sail thru for few more years. Bangalore and Mysore clubs will fall for Government sooner than we expect. Delhi races, who even cares, it is glorious version of Gymkhana races

 

Critical Update on the Proposed 40% GST for Indian Horse Racing

 (Article has been proofed for Syntax errors and Grammatical mistakes by AI)

The GST Council is scheduled to meet between the 3rd and 4th of September to finalize new tax slabs, which are expected to be rolled out from September 22nd.

A matter of grave concern for the Indian horse racing industry is the proposal to place betting and gambling in a 28% "sin tax" slab with an additional 12% Compensation Cess, resulting in a total effective GST of 40%. Crucially, this tax is proposed to be levied on the full value of the bet (the pool size) rather than on the Gross Gaming Revenue (GGR) or the club's commission.

The Imminent Threat:

If the GST Council adamantly implements this 40% tax on the actual bet value, it will render the entire business model of Indian horse racing financially unviable. Such a high tax burden on the total pool would drastically reduce prize money, discourage ownership, and ultimately lead to the collapse of the industry. In simple terms, Indian racing is as good as dead under this structure.

The Viable Solution:

The only saving grace is to convince the government to apply the GST solely on the club's commission (the platform fee), a model already successfully implemented for financial services like stock market trades. In the stock market, GST is charged only on the broker's fee, not on the entire transaction value. Applying this same principle to horse racing would ensure the industry's sustainability while ensuring the government collects legitimate revenue.

Call to Action:

It is imperative that the Turf Authority of India (TAI) acts immediately. The TAI must submit a comprehensive and compelling representation to the GST Council and the Ministry of Finance. This representation should clearly outline:

• The catastrophic economic impact of a 40% tax on the pool value.
• The successful precedent of taxing only the commission/fee in analogous sectors like stock broking.
• The positive economic contributions of the racing industry (employment, tourism, agricultural support for breeding) that are at risk.

The need of the hour is swift and decisive action from the TAI to secure a fair and rational tax framework before the critical GST Council meeting.