The Indian government’s recent GST Council decision to overhaul the tax rates on sporting events has ushered in a new era for cricket fans and the sports entertainment industry. Central to this change is the Indian Premier League (IPL), whose tickets have been moved to the steepest tax slab of 40 percent, representing a sharp jump from the earlier 28 percent GST rate.
This decision, effective from September 22, 2025, aligns IPL and similar franchise-based sporting events with luxury and demerit goods such as casinos and luxury cars. The move signals a shift in how the government views IPL—not merely as a sporting competition but as a luxury entertainment product, which has significant implications for fans and the broader sports ecosystem.
What This Means for Cricket Fans
For fans eager to experience the thrill of live IPL matches, this GST hike translates into noticeable ticket price increases. If a ticket previously cost Rs 500, the cost will now rise to Rs 700 after tax. Higher-priced tickets show an even larger absolute increase: a Rs 1,000 ticket will cost Rs 1,400 after tax, adding Rs 120 more than before. Those opting for premium tickets priced at Rs 2,000 will see the cost jump to Rs 2,800 from Rs 2,560.
This increase represents roughly a 10 percent rise in total ticket cost, squeezing fans further in a market where additional charges such as stadium fees and online booking costs already make attending matches an expensive affair.
Differential Tax Treatment in Cricket
Interestingly, the new tax scheme draws a clear line between IPL matches and other cricket events. While the IPL and similar franchise tournaments fall under the 40 percent tax bracket, regular cricket matches, including international games, maintain a significantly lower GST rate of 18 percent. Moreover, recognized sporting events conducted by official bodies like the Board of Control for Cricket in India (BCCI) enjoy preferential treatment, with tickets under Rs 500 remaining exempt and anything above being taxed at 18 percent.
This distinction reflects the government’s intent to classify IPL as a luxury entertainment product rather than a traditional sporting event, reinforcing its positioning alongside betting and casino gaming under the GST framework.
Impact on Revenue and Industry Dynamics
From a government revenue perspective, this tax revision is strategic. The GST Council’s broader initiative to simplify the tax slabs has narrowed them primarily to two standard rates—5 percent and 18 percent—while reserving the 40 percent bracket explicitly for high-end and sin goods. The IPL’s placement in this premium bracket highlights its commercial stature and revenue-generating capacity.
Historically, the BCCI has been a significant contributor to GST collections, remitting Rs 2,038 crore in GST over the last two financial years. With the new tax rate, collections from IPL tickets and related merchandise are poised to climb, augmenting government coffers.
However, from the industry and fan engagement standpoint, the implications may be mixed. While the government balances tax revenue with the need to keep everyday essentials affordable, cricket enthusiasts may feel the pinch as attending matches live becomes costlier. This could potentially affect stadium footfall and overall fan interaction with the sport if prices continue to rise.
Conclusion
The GST hike on IPL tickets marks a pivotal moment in India’s sports entertainment landscape. It underscores the evolving perception of cricket’s flagship league as a luxury indulgence rather than just a sport, with taxation policies reflecting this outlook. As fans adjust to higher costs and the broader industry adapts, the true impact of this move will unfold over the coming seasons. For now, the thrilling cheer of the IPL in stadiums may come at a steeper price, reshaping how cricket fans experience the game they love.
Reviewed by Aparna Decors
on
September 04, 2025
Rating:
