In India, horse racing betting is subject to Goods and Services Tax （GST） regulations. The GST rate applicable to horse racing betting is 28%, which is the highest tax slab under the Indian GST system. This tax is levied on the total value of bets placed by punters.
The taxation mechanism involves treating the betting amount as a supply of service. Bookmakers and betting operators are required to register under GST if their annual turnover exceeds the threshold limit of ₹20 lakhs. They must file regular GST returns and maintain proper accounting records of all betting transactions.
Several prominent horse racing venues in India operate under this GST framework, including the Royal Calcutta Turf Club, Mumbai Royal Western India Turf Club, and Bangalore Turf Club. These establishments must ensure compliance with GST regulations for all betting activities conducted on their premises.
The implementation of GST has brought uniformity in taxation across different states, eliminating the previous complex system of multiple state-level taxes. However, there have been ongoing discussions about potentially revising the GST rate for horse racing betting to make it more competitive with other forms of legalized betting in the country. |
