The redesigned GST structure that was presented on Wednesday is expected to result in an increase in the cost of Indian Premier League match tickets. The GST slab for the IPL will increase from 28% until this year to a staggering 40%. This significant shift would make IPL tickets equal to the GST imposed on casinos and upscale goods.
This comes after a recent verdict that would increase the GST fee for expensive athletic events. As the most lucrative franchise league in India and cricket, the IPL will undoubtedly be impacted by this. However, it is unclear if leagues like the Pro Kabaddi League or the Indian Super League in football will be included in the same category.
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Fans will now have to pay an extra 400 rupees for GST for every 1000 rupees they spend on a ticket, a 12% increase from the previous 28% tax rate. In addition to fans looking for general admission tickets to these games, this will have a significant effect on the more costly corporate and hospitality boxes, which are already quite costly in the league's rapidly expanding market.
The change comes after a verdict that keeps these wealthy leagues in the same tax bracket as luxury automobiles, tobacco, and other things, making up for the GST council's reduction in taxes on goods that were considered necessities, like food and household supplies.
However, it is anticipated that the franchise leagues would increase by up to 40%, which will result in more expenses for IPL matchgoers. This is because they may be associated with upscale entertainment instead than athletic pursuits. Therefore, non-league games like domestic or international ones shouldn't be expected to be treated the same way. These are anticipated to continue to qualify as sporting events while maintaining their 18% GST rate.
On September 22, the new GST rules will take effect. It will take time to determine whether the increase in IPL ticket prices will make it more difficult for fans to attend games or if it is a disguised boon that will enable the highly commercialized sports league to make a genuine difference at the local level.
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