IPL match days just got costlier; higher GST sparks concerns over gate revenue, attendance

IPL tickets to get expensive due to higher GST.

Indian Premier League (IPL) match days are set to burn a bigger hole in fans’ pockets, with higher Goods and Services Tax (GST) pushing up ticket prices. While the move is expected to make in-stadium experiences more expensive, franchises are worried it could dent gate revenues and affect crowd turnout during the upcoming season.

How much is GST on IPL tickets now?

According to GST 2.0, admission to casinos, race clubs, any place having casinos or race clubs, or sporting events like the IPL will now attract 40 percent with Input Tax Credit (ITC) from 28 percent with ITC.

IPL tickets have been classified in the "luxury goods" category.

In the new tax reforms, while recognised sporting events remain exempt from GST, unrecognised sporting events (either IPL or football events), will attract 40 percent GST, said Hardik Gandhi, Partner, Deloitte India.

What are recognised sports in India?

Sports which are governed by government-approved national sports federations (NSFs) that are recognised by the Ministry of Youth Affairs and Sports (MYAS) are considered recognised sports including archery, athletics and badminton.

Recognised sports bodies include the Indian Olympic Association, Sports Association of India, and the International Olympic Association.

How expensive will IPL tickets get?

Cost of IPL tickets will increase by 10 to 15 percent due the increase in GST, said Santosh N, managing partner of D&P Advisory, a valuation services provider.

A Rs 1,000 ticket that previously cost Rs 1,280 (inclusive of GST) will now cost Rs 1,400 with GST, adding an extra Rs 120 for every Rs 1,000 spent, Gandhi said.

Will higher cost of tickets lead to lower attendance in stadiums?

Punjab Kings' chief financial officer LC Gupta told Moneycontrol that the GST hike to 40 percent from 28 percent is likely to reduce in-stadium attendance to some extent, particularly among casual fans, buyers of lower-priced tickets and in less affluent regions.

Gandhi said the total cost of attending a match extends beyond the ticket price, often including spending on food and beverages, hospitality, and merchandise. As a result, the GST rate increase may shape public perception around affordability, potentially making the in-stadium experience feel more expensive, particularly in comparison to watching matches via digital platforms or television broadcast/OTT.

He also said IPL, which is one of the major sporting events in the country and holds significant value in terms of tradition and live match day experience for fans, has dynamic ticket pricing, varying by demand factors such as weekends, marquee fixtures, playoff matches, derbies, and the location of the stadium — whether in metros or non-metro cities.

Gupta said their home venues are Mohali and Dharamshala, which are not metro cities. "Price sensitivity is relatively higher in these markets compared to franchises based in metros, so we expect the effect on our ticketing revenues to be more pronounced," he said.

Santosh also thinks that the impact of increased pricing due to higher GST will not be an issue in metro cities "but it could be a concern in non-metro cities".

Will higher GST on IPL tickets affect franchise ticketing revenue?

The GST hike to 40 percent is likely to negatively affect their ticketing revenues, though the exact impact will depend on several factors, Gupta said.

Franchises may need to reassess their pricing strategies and explore more flexible models, such as early-bird offers, loyalty programs, family packages, discounted season passes for home games, and specific initiatives targeting price-sensitive segments like casual fans or spectators in smaller cities, he said.

"In addition to pricing, enhancing the overall fan experience within stadiums will be key to maintaining attendance and engagement levels despite higher costs," he added.

Will the GST increase affect sports leagues other than IPL?

The impact of higher GST could be more painful for other leagues such as Pro Kabaddi League (PKL) and Indian Super League (ISL), Santosh said.

He said any substantial hike in entry costs for non-international or non-elite events like PKL will have a disproportionate effect on attendance compared to premier leagues like IPL, due to less brand loyalty and thinner margins.

"Attendance at these leagues typically relies more on affordable tickets and grassroots appeal compared to the IPL; price rises here could hit average or casual fans harder, shrinking gate revenues and reducing stadium atmosphere," he said.

The revenue from ticket sales for leagues other than IPL constitutes a higher percentage of revenues to the franchisees. "Hence, lower gate receipts and match day revenues means lesser profits for these franchisees," Santosh said.

On average, IPL franchisees’ earnings from match-day revenue, including ticket prices, merchandising, food and beverages, account for around 20 percent of their overall revenue.

It is estimated that franchises earn around Rs 400 crore from the sale of tickets through the league. A match is estimated to generate Rs 3-5 crore in ticket sales.

According to Gandhi, a ripple effect on ticket pricing is expected across major sports leagues such as the PKL and ISL. "These leagues draw a wide and often cost-sensitive audience, especially from Tier 2 and Tier 3 cities. Organisers will have to thread a balance between affordability and ensuring profitability and fan turnout for live events," he said.