INNOVATIVE SOLUTIONS TO THE GST PROBLEM
There appears to be still an uncertainty about whether the 28 % GST is applicable on the total turnover or on the service component of the turnover. Hopefully it is the latter.

However if it is the former, here are some ideas that might be helpful in reducing the damage to the industry.

We can introduce some new category of bets which can reduce the impact of GST in a big way.

In order to explain what I am trying to convey let me make some assumptions:
Assuming a 33 % total deduction in the totalizer including 28% GST and 5 % tote commission

Assumming … for the purpose of comparison only … that as examples, horses with 40% chance of winning were successful.

Assumming Rs 1000 as the amount of investment
Six new category of bets on the totalizer can be introduced as given below :
1) TWO RACE WIN ACCUMULATOR ( DOUBLE):

A win dividend on a Rs 10 win ticket for a horse with 40 % win chance would be = 100*0.67/ (0.4*10) = 16.75. Hence a Rs 1000 investment would yield Rs 1675

If this amount of Rs 1675 is reinvested in the 2nd race which also has a 40% chance and is successful ( as in a Win Roll ) then the total return on investment = 1675*1.675 = Rs 2805

However a Rs 10 bet on a successful two race accumulator ticket on the same two horses ( with 40 % chance in each leg of the double ) would pay a dividend of Rs 100*0.67/ (0.4*0.4*10) = Rs 41.875, thus a Rs 1000 investment ( ie on 100 tickets) would yield a return of Rs 4187.50 as against Rs 2805 given above.

This return of Rs 4187.50 corresponds to an investment of `x` amount invested in the 2nd race also with a 40 % win chance, where `x` is worked out as =
100* (418.75)^0.5 = Rs 2046, which corresponds to a Rs20.46 dividend on a Rs 10 ticket, which in turn corresponds to a `y` % deduction on the tote , where `y` =
(1 - 20.46 * 0.4*10/100) *100 = 18.16 % which corresponds to a GST of 13.16 %

All that is required is to imagine you are playing for win in a single race where the number of runners is the product of the number of runners in each of the two races. thus if the two races have 4 runners each, you can assume you are playing in a single race which has 16 runners, and the dividend you will get will correspond to an 18.16 % tote deduction ( 13.16 % GST)

In a seven race card there can be 21 such Two race accumulator bets ie 1st and 2nd race,( 1 &2) 1st and 3rd race (1 & 3) ...going upto 6th and 7th race (6 &7)

2) THREE RACE WIN ACCUMULATOR (TREBLE):

In the same way as worked out above the return on investment of Rs 1000 after three successful win investments = 1675*1.675^2 = Rs 4699

And on Rs 1000 invested in the Accumulator ( Treble), the return is worked out as Rs 10468, for which `x` is worked out as Rs 2181, and `y` is worked out as
= 12.76 percent which corresponds to a GST of 7.76 %.

In a seven race card there can be as many as 35 such 3 race accumumalotor bets.

3) TWO RACE SHP ACCUMULAOR , 4) THREE RACE SHP ACUMULATOR, 5) TWO RACE PLACE ACCUMULATOR and 6) THREE RACE PLACE ACCUMULATOR : Calculations can be worked out in the same way as above.

JACKPOT, TANALA, EXACTA, FORECAST, AND QUINNELA BETS can be continued with a 33 % deduction on the Totalizer as against about 45 % being deducted now.
While Win, Place and SHP bets may continue … they are not likely to generate much interest in view of 33 % tote deduction. Bulk of the betting turnover will be generated from the Accumulator bets apart from Tanala, Exacta, Jackpot etc. And it is possible the turnover may be quite substantial.

Will come back

With best wishes

S.K.SAGAR