The government of India has announced GST reforms that will come into effect from September 22. Currently, India has a 4-tier Tax structure, and that would be changed to a 2-rate structure. Going forward, the two rates would be a Standard Rate of 18% and a Merit Rate of 5%. A special de-merit rate of 40% for a select few goods and services would be there. This will have an impact on the price of the ticket that you paid last year to watch an IPL game.
On September 3, the government released a list containing the new tax bracket on all goods and services. The IPL matches previously attracted a 28% GST, but it has now been changed to 40%.
In simple terms, if the price of an IPL match’s ticket was INR 1000, a fan had to pay INR 1280 to purchase the same. However, now under the new GST reforms, the same ticket would cost INR 1400, an increase of INR 120.
Regular Cricket Matches’ Price Won’t Be Affected
The official list mentioned that admission to casinos, race clubs, any place having casinos or race clubs, or sporting events like the IPL would attract a 28% GST. However, the price of a regular match ticket in the country is likely not to be affected by the new GST reforms.
The move to increase the GST on IPL tickets means that the government is treating IPL as a premium entertainment and is taxing it like a luxury service. The official list didn’t mention anything about the ticket prices of other sporting events like the Pro Kabaddi League (PKL) and the Indian Super League (ISL). It might mean that the GST on these events might remain the same as it was in the past.
The GST on Sports goods other than articles and equipment for general physical exercise and gloves specially designed for use in sports have been reduced to 5% from 12%. All the products that fall under the umbrella of Sports Goods and Toys would now attract 5% GST. The GST on Yacht and other vessels for pleasure or sports has been increased from 28% to 40% as well.
Leave a Comment