In a presentation made to members of Group of Ministers, Turf Authorities of India - the apex body of Horse racing - cited Supreme Court and High Court judgements to establish the fact that prize money does not fall within the ambit of `actionable claim’ as far as horse racing is concerned.

Zavaray S Poonawalla, Chairman, GST Cell and Counsel Member, Turf Authorities of India, along with his team and Senior Counsel, Aryama Sundaram made the presentation.

Since its inception and regularisation in 2017, GST Act on Actionable claims has raised ambiguity and concern both in the Ministry and affected industries. The varied interpretation and perceptions on the `Actionable Claim’ clause in the act imply shortcomings which have triggered deliberations and a need for correction, he said.

"All bets placed at race courses are through an electronic foolproof system called Totalisator. A small fixed percentage of the bet amount is charged as a service fee purely for organising the horse racing and for equestrian welfare including the workforce involved. It is the only amount retained by the Club as commission and they are in no way part of the bet whatsoever. Race clubs are non-profit organisations governed by set guidelines and managed by Honorary Committee Members," explained Poonawalla.

Horse racing industry in India has witnessed a sharp decline in its operations since the shift to GST regime, and is now on the verge of closing down. “It is a great misfortune for our country and horse lovers that one of the oldest sports in the world is losing its glory,” said Poonawalla. He hoped that justice will prevail and that the GST council will accede to their appeal on merit.

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