BANGALORE TURF CLUB LIMITED Vs. STATE OF KARNATAKA REPRESENTED BY THE PRINCIPAL SECRETARY FINANCE DEPARTMENT

JUDGEMENT

(1.) The petitioners in these writ petitions inter alia challenge the legislative intent of making the petitioners liable to pay Goods and Services Tax ('GST' for short) on the entire bet amount received by the totalisator and declare the amendments dated 25-01-2018 which inserted Rule 31A(3) to the CGST Rules as being ultra vires the CGST Act.

(2.) Adumbrated in brief, the factual background as projected by the petitioners are as follows:

(3.) If a horse backed by the punter wins, the winning punter is required to surrender the receipt and receive the winning amount. It means, a losing punter's money is used to pay the price money of the winning punter. The price money is distributed by the petitioners to the winning punter and out of the amount Commission is set apart to be taken by the petitioners.