Watching MS Dhoni, Virat Kohli in IPL will leave a bigger hole in pocket after GST 2.0: Complete breakup of ticket price

Tickets for matches for the Indian Premier League are set to see a hike in price due to the restructured GST structure unveiled today. The IPL will see its GST slab rise from 28% until this year up to a whopping 40%, a big change that sees IPL tickets match the GST levied on luxury goods and casinos. Fans at the Wankhede Stadium reach out towards Virat Kohli.(REUTERS)

This follows a new ruling which will see high-value sporting events receive a hike in their GST charge. The IPL, as the most cash-rich franchise league across sports in India and in cricket, will be certain to be affected by this, but it remains to be seen whether leagues such as the Pro Kabaddi League or the Indian Super League in football will fall under the same bracket.

The earlier 28% tax rate sees a 12% increase, with the new 40% meaning fans will have to pay an additional 400 rupees for GST for every 1000 rupees they spend on a ticket. This will have a big impact on those seeking general admission tickets to these matches, but also particularly in the more expensive hospitality and corporate boxes, which already cost big money in the ever-growing league.

International cricket unlikely to see change

The shift follows a ruling which sees these high-money leagues kept in the same bracket as luxury cars, tobacco, and more, compensating for the GST council’s slashing of taxed items that have been deemed as essentials, such as household goods and food.

However, while the franchise leagues are expected to rise up to 40% and thus add cost for match-going fans in the IPL. This is a result of them potentially being categorised with high-end entertainment rather than sporting activity. Thus, the same is not expected for non-league matches such as international or domestic games. These are expected to maintain their 18% GST rate, still qualifying within the sporting events category.

The new GST regulations will come into effect from September 22. Whether the hike on IPL tickets presents a bigger burden on fans wishing to attend matches, or comes as a blessing in disguise to help the ultra-commercial sports league have real impact at the grassroots level, will only be answered with time.

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