GST 2.0: Going For An IPL Match Just Got More Expensive For You
The new GST regime now enforces a uniform 40% tax on IPL tickets and services related to the sporting event.
As part of the government's sweeping changes to Goods and Services tax rates, sporting events such as the Indian Premier League and Pro Kabaddi League is set to attract tax slab of 40%, up from 28% earlier. The Chairman of the Central Board of Indirect Taxes and Customs, Sanjay Kumar Agarwal confirmed this in an interview to NDTV Profit.
This puts IPL in the highest GST slab, on par with sin goods including tobacco products like cigarettes, pan masala as well as casino, race clubs and other luxury events.
This means watching an IPL game at a stadium is set to get significantly more expensive for cricketing fans across the country.
It comes at a time when the IPL continues to gain immense value, with its franchisees expanding their reach globally.
The new GST regime now enforces a uniform 40% tax on IPL tickets and services related to the sporting event. Other high-value sporting events are also expected to attract the same rate.
Tickets for Pro Kabaddi League — the second most watched sports league in India — will also be dearer.
How This Impacts IPL Ticket Prices
To put things into perspective, a Rs 1,000 base value IPL ticket used to attract a 28% GST earlier, which amounts to the final price of Rs 1,280.
Now, with 40% GST enforced, that same ticket is going to cost Rs. 1,400, which accounts for a Rs 120 increase for every Rs 1000 ticket.
Retaining the same formula, a Rs. 5,000 rupee base ticket will now cost Rs 7,000 versus Rs 6,400 earlier.
A Rs 2,000 rupee ticket, meanwhile, will cost Rs 2,800 versus Rs 2,560 earlier.
The Curious Question
What is particularly interesting is that the government has mentioned IPL alongside other 'sporting events'.
This begs the question: Will similar taxes be levied upon other sporting leagues like the Indian Super League, which already struggles attracting crowds in stadiums?
