GST of Rs.2038.55 Crore collected from BCCI

The Minister of State in the Ministry of Finance Shri. Pankaj Chaudhary has stated in response to a question raised in Lok Sabha that GST of Rs.2038.55 Crore collected from BCCI.

The Minister Shri Sanjay Raut asked the question in Lok Sabha:

Will the Minister of FINANCE be pleased to state:

(a) the estimated loss in Government revenue due to the current tax exemptions and benefits provided to the BCCI and IPL during the last five years;

(b) the steps the Government is taking to address this potential revenue gap;

(c) whether there is any proposed legislation aimed at reforming the tax treatment of sports organizations like the BCCI and IPL; and

(d) how Government will ensure that future policies will promote both the growth of sports and fair tax contributions?

The Minister of State in the Ministry of Finance Shri. Pankaj Chaudhary replied:

(a), (b), (c) and (d): BCCI is an autonomous body registered under the Tamil Nadu Societies Registration Act, 1975. The International Cricket Council (ICC) has recognized BCCI as the apex body for the promotion of cricket in India. BCCI does not receive any grants from any scheme of the Department of Sports, Ministry of Youth Affairs and Sports.

BCCI is claiming exemption under section 11 of the Income Tax Act, 1961. However, during assessment proceedings, the exemption is being disallowed by the Income Tax Department. The issue of the BCCI ’s tax exemption is currently sub judice. Further, there is no direct tax proposal pending in this regard, at present.

Furthermore, services by way of admission to sporting events such as the Indian Premier League are subject to GST at a rate of 28%. The BCCI collected Rs.2038.55 crores in gross GST revenue between the financial years 2022-23 and 2023-24.