Seeing Virat Kohli-Rohit Sharma in IPL became expensive, the world’s richest league IPL will now be 40% GST

New Delhi: The Indian Premier League (IPL), known as the world’s richest Cricket League, has now fallen in India’s highest tax category. After a change in the GST structure (GST overhaul) by the central government, 40% GST will now be imposed on tickets for IPL and other premium sports events. Earlier this rate was 28%. This will directly affect the pockets of cricket lovers. Going to the stadium and taking the thrill of the match has become more expensive than before.

New GST burden on tickets

With this decision of the government, the price of IPL tickets has directly booured. For example:

Earlier, on the ticket of Rs 1000, 28% GST was used, that is, the total price of the ticket was Rs 1280.

Now the same ticket will be Rs 1400 after 40% tax. That is, on every 1000 rupees ticket, fans will have to pay an additional Rs 120.

That is, a direct increase of 10%.

Changes in different ticket categories are as follows:

500 rupees ticket will now be available for Rs 700 (earlier Rs 640)

1000 rupees ticket will now be available for Rs 1400 (earlier Rs 1280)

The ticket of 2000 rupees will now be Rs 2800 (earlier 2560 rupees)

Why increased tax?

Under the new GST rates, IPL and other expensive sports events are now ranked in luxury and non-working and luxury. This category already includes casinos, race clubs and luxury goods. The government believes that premium sports events are part of the “high class consumption” of entertainment and it is appropriate to levy more taxes. This change shows that the government is now watching events like sports entertainment, especially IPL, in the category of “Sin Goods” and high-end desiration.

No effect on general cricket matches

It is worth noting that this tax rate will be applicable only to IPL and premium leagues. The GST rate on simple cricket matches (eg home series, international bilateral matches) will still be 18%. That is, while on one hand, fans will have to loose pockets to watch IPL matches, while Team India’s Test, ODI or T20 matches will remain relatively cheap.

Relief on movie tickets

Interestingly, while tickets have become expensive for cricket fans, film lovers have been given relief.

GST has been reduced to 12% to 5% on film tickets up to Rs 100.

Tickets above Rs 100 will apply only 18% GST as before.

That is, watching a film in single screen or small theaters will be cheaper, but the live thrill of IPL and expensive.

Effect on audience

Watching the match at the stadium was already considered an expensive hobby. In addition to ticket price:

Online booking fees,

Parking charge,

The cost of eating and drinking within the stadium,

Already, fans used to loose pockets. Now with the implementation of 40% GST, an average audience will have to spend hundreds of rupees more in every match. This decision will affect their budget, especially for the middle class and young audiences who used to buy IPL tickets for years and go to the stadium.

Impact on IPL franchises and BCCI

Experts believe that tax increase can affect the sale of IPL tickets.

Corporate boxes and VIP stands with expensive tickets will not make much difference, as the audience is already of high income group.

But the demand for lower -class tickets, on which common fans depend, may decrease in their demand.

However, a large part of the income of BCCI and franchisees comes from sponsorship and broadcasting deals. Therefore, they will reduce direct loss. But the atmosphere associated with the presence of the audience and the “stadium experience” may be affected.

What do experts say?

Economists say that this step of the government is an attempt to control revenue as well as luxury consumption.

Professor S.K. According to Gupta (tax expert): “IPL tickets are now in category like tobacco, alcohol and casino. This is the message that the government considers it to be ‘entertainment luxury’, not ‘essential sports activity’. ‘

At the same time, analysts associated with the sports industry believe that this decision may reduce the audience number in a long time. Especially on the youth and student class, it will have more effect.

International comparison

Other leagues of the world, such as England’s Premier League (EPL) or America’s NBA, are relatively low tax rates on tickets. Governments there encourage sports as public entertainment and cultural activity. Conversely, the IPL in India has now been put under the category of luxury products. The magic of IPL draws millions of spectators on TV and mobile screen every year, but it has become more expensive for those watching live matches by going to the stadium. The 40% GST rate has put the IPL in the country’s highest tax category, which has added an additional burden of up to 10% in every ticket price. While this decision is a means of raising revenue for the government, on the other hand, the common cricket lover will make the lover wondering whether to go to the stadium and watch the match is still economical.