Zavaray S Poonawalla gallops to rescue horse racing industry

Former turf club chairman asks ministers’ panel to reconsider Goods and Services Tax, as horse racing struggles for survival

It was Zavaray S Poonawalla, or ZSP as he is fondly called, at the Mumbai and Pune race courses, galloping to try and rescue the beleaguered horse racing industry. The former chairman of the Royal Western India Turf Club (RWITC) and current chairman of GST Cell and counsel member at Turf Authorities of India, along with his legal team, made a  presentation to the Group Of Ministers (GoM) on Tuesday.

Claim concern

The presentation  at a virtual meeting, addressed the adverse impact of the Goods and Services Tax (GST) on horse racing. It was a tight 15-minute window allocated to the horse racing industry. Within that, the Turf Authorities of India, the apex body of the sport, cited Supreme Court and High Court judgments establishing that GST on prize money does not fall in the ambit of Actionable Claim as far as horse racing is concerned.

Also read: Zavaray S Poonawalla gallops to rescue horse racing industry

Zavaray S Poonawalla, counsel member, Turf Authorities of India

Since its inception and regularisation in 2017, the 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 GST Act, imply shortcomings which have triggered deliberations and a need for correction.  
It has been almost three months since the GoM has been formed to study the intricacies of GST application on horse racing, online gaming and casinos. Several meetings have taken place. The matter remains inconclusive, though.

A small service fee

Said Poonawalla at the meet, “All bets placed at race courses are through an electronic fool proof system called Totalisator. A small fixed percentage of the bet amount is charged as a service fee. It is the only amount retained by the club as commission, and the club in no way is part of the bet. Race clubs are non-profit organisations governed by set guidelines and managed by honorary committee members.”

“Today if one places a bet of Rs 100 on the tote, Rs 10 is deducted as club commission and Rs 28 is taken as GST. Effectively, one is betting Rs 62 only,” explained Poonawalla, in layman’s lingo.

The former chairman who has maintained that GST made the already struggling industry absolutely precarious now, said to the panel, “The horse racing industry in India has witnessed a sharp decline since the evolution of GST and is now on the verge of closing down.” 

Tues
Day Zavaray S Poonawalla met the ministers

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