Bengaluru: In a huge relief for Bangalore Turf Club and Mysore Race Club, the Karnataka High Court on Thursday quashed the Central Government’s action of imposing GST (Goods and Services Tax) on total betting amount on a horse race.

The Bangalore Turf Club and Mysore Race Club had petitioned the High Court questioning the decision to impose GST on total betting amount through an order, which the Union Government had issued after making an amendment to the GST Act,2017 on Jan.25, 2018, by including Section 31a(3).

A single Judge Bench of the HC comprising Justice M. Nagaprasanna, which heard the petition, observed that Race Clubs get only commission just as Stock Broking firms or Travel Agents get commission for their service. The GST can be imposed only on the accrued income earned from the commission and not on the entire betting amount. As such, GST is applicable only for commission amount earned by the Race Clubs through organisation of horse racing activities and not for the total betting amount on horse races, the Court said, while quashing  Section 31a (3) of GST Act, 2017, introduced by the Union Government and Section 31a of Karnataka Goods and Services Tax.