The Turf Authorities Of India (TAI) has expressed its disappointment at the decision taken by the GST council, at its meeting held on July 11, to impose a GST of 28% on the full face value of the bets placed in horse racing.
Mentioning that horse racing is a sport recognised internationally, and even in India for over 200 years, TAI has put forward a plea to the council to reconsider its decision by highlighting certain issues, namely:
1. Turnover has dropped by nearly from about ₹17,000 crore to approx. ₹6,400 crore during the post GST period, as compared to the period prior to introduction of GST.
2. Patronage for horse racing has dwindled with returns reducing by nearly 50% in the level of dividends, to racing patrons as compared to the pre-GST period.
3. Revenues to the clubs have dropped resulting in increased overhead cost and consequential displacement of labour.
4. Mushrooming of grey channels of betting, to the detriment of the government and clubs, have eroded the very foundation of racing with tremendous loss of revenue as well.
5. The sustenance of the agro-veterinary industry, generating ₹300 crore per annum and the breeding industry worth about ₹500 crore per annum, is at stake in the absence of investment in the sport, following reduced returns to the race horse owners.
6. Employment to about 2 lakh workers, both direct and indirect and mainly rural-based, is in danger and specialists like trainers, jockeys, etc. cannot be absorbed elsewhere.
“We conclude with a fond hope that the matter will be reviewed most appropriately, to support an agricultural base industry, as otherwise, the closure of the entire racing industry in the country is imminent and unemployment on a massive scale is unavoidable at all the seven racing centres in the country and about 40 breeding establishments across the country.” stated TAI in a press release.
