TaxTMI 
TaxTMI 
TaxTMI 
Horse racing has been clubbed with entertainment at 28%. Turf Clubs have a totalizator system which works on pari-mutuel basis where pooling happens from ppl who bet and from the total revenue collected, a commission is taken out and rest is distributed back to the public. For instance, at Bangalore, for every 100 rupee collected, 12 is taken out as commission and the rest 88 is paid back. If the 12, 8% goes to the state govt as betting tax and 4% is retained by the club. The annual turnover of the Club is around 2000 crores. Will the GST be on the turnover or the commission? The 'service' is costing these Clubs only 12% and not the actual turnover. A similar instance that can be cited here is that while trading Securities (or share trading), the tax is applicable only on the difference between the selling and the buying price and not on the total investment. Thank you.
GST on Horse racing
Shashi Kumar
GST on betting applies to total betting turnover rather than only the club commission for pari mutuel wagering. Horse racing is treated as a high rate entertainment supply where bettors' stakes are pooled under a pari mutuel totalizator; although clubs retain a commission from the pool, the advisory reply states GST is to be levied on the total turnover (the pooled betting receipts) rather than only on the commission. (AI Summary)
