MAHINDAR SINGH RATHORE

  The Grim Toll of 40% GST on India’s Horse Racing Industry: A Sport on the Brink Horse racing, long celebrated as the "Sport of Kings," holds a special place in India’s sporting and cultural heritage. It is a game of skill, tradition, and passion—an industry that supports thousands of people, from breeders and trainers to jockeys, stable hands, racecourses, and ancillary service providers. Yet, in a move that defies reason and the spirit of the sport, the government’s imposition of a 40% Goods and Services Tax (GST) on horse racing, classifying it as a form of online gambling, threatens to decimate this centuries-old institution. A Supreme Court-Recognized Skill-Based Sport Reduced to ‘Gambling’ In 1996, the Supreme Court of India ruled unequivocally that horse racing is a game of skill , distinguishing it from games of chance or mere gambling. This recognition, long supported by global precedent, should have protected the industry from arbitrary taxation measures aim...

  1. Supreme Court Position on Horse Racing The Supreme Court of India , in several landmark judgments (e.g., Dr. K.R. Lakshmanan vs State of Tamil Nadu, 1996 ), has explicitly held that horse racing and betting on it is a “game of skill” and not merely gambling . The reasoning: A bettor uses knowledge of bloodlines, jockey form, trainer tactics, handicap ratings, track conditions, and past performance to make an informed choice—not sheer luck. Therefore, horse racing betting is legally protected and cannot be equated with games of pure chance like lotteries or casino games. 2. GST / Sin Tax Issue The GST Council , while trying to simplify taxation, brought online gaming, casinos, horse racing, and betting under a 28% GST slab (from Oct 2023) , calling them activities with “negative externalities” similar to sin goods. In some discussions, an even harsher 40% “sin tax” model (like tobacco/liquor) has been floated. If horse racing were clubbed into this, it impli...