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Prize money received from horse-race clubs upon winning is not subject to GST, MH AAAR set aside AAR ruling

For occurrence of any taxable event, there must be direct and immediate link between supply made and consideration received. Hence, where applicant owns horses, which participate in races organised at different race clubs, and upon winning, applicant is awarded prize money in respect of horse which wins race, said prize money would not be subject to GST as there is no element of service when applicant’s horse wins race and gets prize.

Source: taxmann.com

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