IPL Ticket GST Controversy: Why 40% Tax May Be Reduced to 18%

Should going to the stadium and watching an Indian Premier League (IPL) match really be so expensive that it should be categorized as ‘sin goods’? Now, the IPL franchise teams have presented their views before the government regarding this question. Currently, IPL tickets attract a GST rate of 40%, which is similar to the tax imposed on items like pan masala, tobacco, gambling, and casinos. This higher rate was introduced after recent changes in the GST structure.

The teams say that it is not right to put the cricket match in the entertainment category. He argues that the IPL is a game that people from all walks of life watch and enjoy with their families. Its social impact is positive, whereas the impact of activities like gambling or casinos is considered negative. 

The franchises have appealed to the Finance Ministry to classify IPL matches as ‘sporting events.’ If this happens, the GST applicable on tickets may directly reduce from 40% to 18%. Interestingly, tickets for international matches organized by the Board of Control for Cricket in India (BCCI) already attract an 18% tax. 

The teams have also raised the question that when there is only 18% tax on hotel rooms and business class and first class air travel starting from Rs 7,500, then why is 40% tax being imposed on IPL tickets? He believes that such a high tax rate is harmful to the sports ecosystem and can also affect the development of sports in the country.

Additionally, given cricket’s expansion into new markets like the US and Saudi Arabia, such a high tax rate in India could impact its sport growth prospects. The final decision on this issue will be taken in the GST Council meeting. It is believed that in the next meeting, it will be decided whether IPL should be kept in the category of ‘sports’ or not. If there is a tax cut, cricket fans will directly benefit from it, and watching matches may become cheaper than before.