A Petition has been filed in the Karnataka High Court challenging the validity of circular imposing maximum Goods and Services Tax ( GST ) on Payment into Horse Racing Totalisator.
The Karnataka High Court has sent notice to the Revenue, Union and State Governments in relation to a writ petition filed by Bangalore Turf Club Ltd & Mysore Turf Club Ltd.
The petitioners challenged the validity of a Circular dated 4th January 2018. As per the Circular, GST will be applicable at the rate of 28% on the total amount paid into the totalisator.
The petitioners contended that the Circular violates Section 9 and 15 of the Central Goods and Service Tax Act as well as the Notification 11/2017-Central Tax (Rate) dated 25th January 2018.
It was further submitted by the petitioners that GST cannot be charged on the total amount paid into the Totalisator as more than 70% of it is with the Club as agents or trustees to be handed over to the winners. According to the petitioners GST can only be imposed on the intrinsic value of the consideration received.
The petitioner was represented by Senior Counsel N. Venkataraman and Advocate Dinesh Kumar.
Justice S. Sujatha, who has heard the matter, will decide on the interim application for stay on 17th April.
