GST 2.0: How New GST Rates are impacting Cricket and IPL?
Let's break down how the new GST 2.0 rates can put a massive impact on the game of cricket and the Indian Premier League (IPL). With the price hike for the spectators enjoying the game from the ground, will it see more empty stadiums during the best franchise cricket league of the world?
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The fans of cricket will now have to pay more to watch and enjoy the games of the Indian Premier League (IPL) from the stadiums as the government has increased the GST rates from 28% to 40%. This hike has placed IPL tickets in the highest tax bracket, along with casinos and luxury goods. That will be incredibly costlier for the spectators across India.
The new rates are part of the broader GST reform, which will target discretionary spending. The price hike will be a significant move for the game's spectators, who put their hard-earned money into enjoying the game more closely. An INR 1000 ticket that was previously priced at INR 1280 with the GST will now make a huge jump of INR 120 to the final price of INR 1400.
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On the other hand, the ticket price of INR 500 will now cost INR 700 instead of INR 640. For the tickets of INR 2000, the price will now rise to INR 2800 rather than INR 2560.
Know how new GST rates have massive impact on cricket
The new structure of the tax treats IPL viewing as a luxury activity, which has placed it in the same category as tobacco products and betting services. However, these rates are not for regular cricket matches, which will continue to attract only 18% GST, making this change specific to premium sporting events like the IPL.
The impact of these rates on the spectators of the IPL will go beyond just the ticket pricing. They must now factor in this higher tax rate along with the additional costs like the online booking fees and the stadium charges. This makes watching the live games of the best franchise cricket league in the world a more expensive affair for cricket lovers across the country.
In contrast, the movie-lovers will not have to go through the same hustle and bustle. Their cinema tickets of INR 100 will now attract only 5% GST with input tax credit. For the tickets above INR 100, the 18% GST rate remains unchanged. However, it will be interesting to see how these rates make a change to the viewership of the league from the ground.
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