Turf clubs liable to pay GST only on commission received for service of totalisator: HC

Court strikes down GST rules levying tax on entire 100% face value

In a judgement that gives a major tax relief to turf clubs, the High Court of Karnataka has declared that the clubs are liable for payment of GST only on the commission that they receive for the service that they render through the totalisator. The court said that the clubs are not liable to pay GST on the entire 100% of the face value of the bet or amount paid into the totalisator while striking down the Rule 31A(3) of the Central GST Rules, 2017 and the corresponding Rule 31A of the Karnataka GST Rules, 2017. Justice M. Nagaprasanna delivered the verdict on June 2 while allowing the petitions filed in 2018 by the Bangalore Turf Club Ltd and the Mysore Race Club Ltd questioning the legality of these rules, which came into effect from January 23, 2018.