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A Novel Protest Idea To Fight The 40% Gst Proposal – Survival Of The Sport

By N M Selvan | 04-Sep-2025

The pitiable plight of the racing Industry

Horse racing has always been known as the sport of kings, but today it faces the indignity of being equated with street lotteries. The government’s proposal to impose 40 percent GST is not merely high—it is fatal. The industry must rise as one: horses in silks, placards declaring the truth, peaceful processions demanding fairness. This is a novel protest, but it is also the only way to save the sport. The time to act is now—before racing in India becomes only a memory

Why This Protest is Needed

The proposal to raise GST on horse race betting from 28 percent to 40 percent is more than just a tax change—it is a death sentence for the racing industry. Already crippled under the weight of the earlier 28 percent, racing has seen its revenues collapse, owners walk away, and thousands of workers lose their livelihoods. If this increase is enforced, Indian racing will not decline gradually—it will collapse suddenly. The urgency cannot be overstated. This is a moment of survival, not negotiation.

The Damage Already Done

The racing industry has suffered heavily under the 28 percent GST regime. Hyderabad is the most striking case. In 2016–17, official betting turnover stood at ?1,217 crore. By 2024–25, it had shrunk to only ?141 crore. This decline is not because punters lost interest, but because taxation drove them into the illegal market, which today is estimated at over ?2,000 crore annually in Hyderabad alone.

A Double Standard in Policy

India has repeatedly protested against the United States for imposing steep tariffs, such as the 50 percent duty levied by former President Donald Trump. At the time, the government argued that such protectionist measures destroyed employment for thousands of Indian workers. If that was true, then how can the same government now justify imposing a 40 percent GST on horse racing—a sport and an industry that supports thousands of professionals, stable hands, riding boys, trainers, breeders, and veterinary staff? An American leader’s ignorance of Indian economics may be pardonable, but when our own government knowingly destroys employment at home, it becomes indefensible.

The Shadow of Illegal Betting

Taxation at 28 percent had already created a thriving illegal betting market. With GST at 40 percent, legal pools will become irrelevant. Punters will simply shift completely to illegal channels, where no tax is collected and no regulation is followed. The government will not only destroy racing but also hand over control of betting to the underworld. This policy will not eliminate betting—it will eliminate legal racing.

Collapse of the Racing Ecosystem

Horse racing is not just about punters and race clubs. It is a deep ecosystem that sustains livelihoods for tens of thousands of people. Owners invest in young horses, breeders maintain stud farms, jockeys train daily, stable staff care for horses, veterinarians provide treatment, and farriers shoe the animals. Already the number of racehorses has dropped sharply, and owners are exiting in large numbers. With a 40 percent GST, owners will stop buying, breeders will close their farms, and workers will lose their jobs. This will destroy a 200-year-old cultural and sporting tradition in India.

How the Protest Should Be Organised

The racing industry must respond peacefully but powerfully. Dignified protest, rooted in the sport’s traditions, is the best way to make the government and the public listen. Here is how it should be done:

Simultaneous Nationwide Action: Organise peaceful protests in Mumbai, Bangalore, Hyderabad, Kolkata, Chennai, and Delhi at the same time. Coordinated action will create national impact.

Mounted Processions: Hold one-kilometer processions from racecourses daily for a week. Jockeys and riding boys should ride Class 5, Class 4, and older horses that are not active contenders. This protects the main racing string while still making a strong visual statement.

Jockeys in Silks: Riders should wear the colourful silks of owners, symbolising the tradition and dignity of the sport. The sight of jockeys in silks mounted on horses will be powerful and unforgettable.

Placards on Saddle Cloths: Each horse should carry a placard with bold red letters on a white background, reading: ???? SOS – 40% GST KILLING RACING. This clear, visual message will dominate media coverage.

Unified Press Messaging: Race club chairmen and officials must speak to the media on the same day, stressing one core demand—that GST must apply only to club commissions, not the total turnover.

Legal Action: All clubs should form a Joint Action Committee (JAC) and be ready to file an emergency case in the Supreme Court, arguing that this tax is unfair, destructive, and unconstitutional.

The Urgency of Action

Hyderabad’s decline shows what is coming. From?1,217 crore in 2016–17 to just 141 crore in 2024–25, the collapse has already begun. Illegal betting is rising, jobs are vanishing, and farms are closing. The 40 percent GST will finish what the 28 percent began. If we wait quietly, racing will be gone in a matter of months, not years. Silence will mean extinction. Action can still mean survival.

Your views in support of this noval protest for or against is welcome.

Post Your reply

12 Replies

Precisely_that said ...

07-Sep-2025

I show how agree with Limblu and Godzilla. The owners, trainers, jockeys or bookies are not even concerned. 

Rather if you see since 2019, the number of bookmakers in Pune and Mumbai have decreased drastically. Have all stopped operating? No only thing is why go to the course, pay a hefty stall fees, GST and still get raised? Better sit outside. There all lines working all over India. They can eat and back a horse in huge amounts( benefit no is watching) and only other bookmakers know about it. And they are sailing in same boat.

Have owners stopped purchasing horses? Rather small owners are gradually disappearing. Which is again a benefit for big owners. Big owners are forming syndicates and partnerships like never before. You see a costly animal it has mostly 4 to at times 10 partners. So rather than owning a horse you become a part owner in 6 to 8 horses. 

Are the big trainers suffering? No they know how to make money in all this. 

Jockeys as it are getting paid as they used to be. And they too have ways of making additional money.  

First of all understand that entire stake money including all the seasons and centers in India doesn't cross 125 crore rupees. 

If you only consider true cost of 50% horses in western India it exceeds this amount. So the big owners that are sustaining over the years have never been dependent on stake money. Forget GST. They recover their money and on paper they are always in a loss. And that benifits them. Rather they are even called generous patrons of the game as they sponsor some races. 

The big punters are not going to submit their PAN card and Adhar Card and pay TDS on winnings above 10k. Nor are they going to pay 40% GST on bets they place. 

So whom are you protesting for. 

In one of my replies I said that all clubs need to come under one umbrella and raise a voice. One of the members in RWITC who is influential said me, don't worry man.... Who cares things will go as they are. 

So you would find yourself along with a few punters for whom clubs don't even care in this protest. 

May the government completely ban racing in India, many youngsters will have a better future. It's more important than if the sport dies or lives. 

Prinit said ...

07-Sep-2025

If protest is arranged in Pune I will definitely participate.

C. R. Dass said ...

07-Sep-2025

All people email finance minister. 

Shiva Kumar said ...

07-Sep-2025

@ Mamma miami 

Will you please tell us what is the tax in U K. What is the hike. 

Passion And Patience said ...

06-Sep-2025

WHEN HORSE OWNERS STOP BUYING, INVESTING ON HORSES IS THE LAST DAY OF INDIAN RACING .BUT THIS WILL NOT HAPPENING IMMEDIATELY, THERE IS STRONG CHANCES THAT  NUMBER OF RACE DAYS GOING TO BE REDUCED ( MAY BE 10 ,12 DAYS OF SEASON), ALTHOUGH ITS ALREADY REDUCED DRASTICALLY. 

SLOW POISION IS SPREADING ...LETS SEE .

Mamma Miami said ...

06-Sep-2025

There's strike in UK on September 10 against Tax hike on horse racing. 

Indian racing clubs don't have courage or character to do same in India. 

They think its labour's job to go on strike. Poonawalla don't have balls to meet GST council before September 22.

Iimblue said ...

06-Sep-2025

@Selvan Bro,your piece was entertaining to read.What will be it's practical value ?.The Race Authorities never cared for the ordinary punter.They never fought against absurd tax policies of the government  before or after introduction of GST.The bookies aere all for 28 per cent GST because it killed the tote!.With 40% GST ,the Bookies think they  will survive,  but the Clubs know they cannot.The long neglected Punter has nothing at stake here.Why fight somebody's fight, when your presence was never even acknowledged. Stay at home and be happy!

Godzilla said ...

06-Sep-2025

Look at IPL, Indian Racing, Indian Public do everything extreme.

Racing should be permanently stopped as the Punters, 80 percent are auto drivers and poor guys who will go to the extent of selling even their undergarments to gamble 

Sinndar said ...

05-Sep-2025

I absolutely agree with your views .The mother feeds the chid only when it cries , so unless a hue and cry is made nobody will hed to you demands . The horse racing is also an industry comprising Race course activity , stud farms , horse feed industry , agriculture , Veteninary  etc . The greedy  Govt is interested in only extracting the maximum tax , without understang the repercussions on the industry.( Racing , tabacco , cigratte  cinema , Alchol etc ) . Some industries could not bear the onslaught of  28% GST and went in to oblivion or shited to better pastures .  Already unemployment and inflation is very high and 40% GST will further flame the fire. The evil of high taxation - illegal trade and busineiss will flourish  In the greed of gold they are killing the golden goose.. To survive the only alternatve is to protest or perish. . So the industry captians should act fast. and give a call.

Race Professor said ...

05-Sep-2025

I completely agree with this protest idea. The 40% GST hike is indeed threatening to destroy an iconic sport like horse racing by hurting owners, punters, and workers alike &  act now to save this heritage before it’s lost forever.

Guru said ...

05-Sep-2025

Leave alone the employment of a handful of people one should also look at the number of families who have been destroyed by the sport. First one should address the misdeeds of people involved in running the sport ex last week's Sprinters Cup in Calcutta and the talk about the taxes. Even at 40 percent taxes the punters will come and racing will go on. May be te shouts will increase with the bookies. The Singapore race club voluntarily gave up to provide lands the housing in Singapore 

Perdo said ...

05-Sep-2025

A real fight must be put on against the government by clubs, jockeys, owners, bookies and even punters. Be it peaceful protests, public/media criticism, lodging PIL, or whatever else mecessary. 
 

Killing a sport, more importantly, killing a lifeline of millions of people, can never be justified.