IPL tickets taxed at 40% GST rate, effective Sep 22

The central government has moved tickets for the Indian Premier League into the highest Goods and Services Tax bracket, raising the levy on high-profile sporting events from 28 percent to 40 percent, officials said after a GST Council meeting on September 3. A circular issued by the council and a Ministry of Finance release on September 4 said the change, which groups the IPL with casinos and race clubs, will take effect from September 22 and is likely to increase the cost of attending matches in stadiums across India.

Under the new rates a ticket with a base price of Rs 1,000 that previously cost Rs 1,280 after the 28 percent tax will now cost Rs 1,400. A ticket priced at Rs 500 would rise from Rs 640 to Rs 700. The government’s circular specifically named the IPL among the events moved into the 40 percent slab and noted that the levy will allow input tax credit.

At the same time, the council said international and domestic cricket will be taxed at 18 percent. The circular spelled out that admission to other recognised sporting events where the ticket price is not more than Rs 500 will remain exempt, while tickets priced above Rs 500 for those events will continue to face the...