GST Slab Changes: Major Impact on Sports Sector with 40% Tax on IPL Tickets
The recent Goods and Services Tax (GST) changes in India are set to significantly affect the sports industry. The GST Council has revised the tax slabs, imposing a hefty 40% GST on tickets for premium sporting events like the Indian Premier League (IPL).
40% GST on IPL Tickets
IPL and similar franchise-based tournaments will now attract a 40% GST on ticket sales, dramatically increasing ticket prices. This new slab is the highest GST rate and places IPL tickets alongside luxury goods, tobacco, and betting services in taxation.
Relief for Recognized Sports Tickets under ₹500
Tickets for officially recognized national and international sports events priced up to ₹500 remain exempt from GST. Tickets over ₹500 continue to be taxed at 18%, minimizing additional financial burden for most traditional sports spectators.
Higher Tax on Betting and Gaming
The GST Council has also included betting, gambling, lotteries, horse racing, and online money gaming under the 40% tax bracket, aiming to boost government revenue from these sectors.
Potential Impact
While the government’s move aims to enhance revenue, it may lead to increased ticket prices and potentially impact audience participation and popularity for high-profile sports events like IPL. Experts see this as a revenue-driven reform with long-term consequences on sports viewership.
