IPL Ticket Prices Soar Following GST Increase What It Means For The Fans

IPL has long been among the largest sporting events in the nation attracting millions of cricket fans to the grounds each year. Attending a live IPL match has never come on the cheap but now fans might be required to dig deeper into their pockets as the government has gazetted a sharp increase in GST on IPL tickets. The tax rate has increased from 28 percent to 40 percent and IPL tickets now come in the highest tax band along with luxury items and casinos. The initiative was a part of a larger package of reforms announced recently and has raised immediate alarm among fans who already pay a significant amount on ticket booking fees and stadium access charges.

To understand what this really means let us take a simple example. Earlier if someone bought an IPL ticket priced at one thousand rupees the actual cost after GST used to be one thousand two hundred and eighty rupees. With the new tax rate of forty percent the same ticket will now cost one thousand four hundred rupees. That is an extra one hundred and twenty rupees for the same seat and this differential will be more burdensome for family groups and groups who watch matches together. While cricket lovers love the game such unexpected increases tend to get people to hesitate before reserving.

The official announcement made it clear that the change concerns entry in casinos race clubs and high-end sporting events like the Indian Premier League. This places IPL tickets currently in the same tax bracket as luxury expenditure which indicates the way that the government treats the league as a high-spending entertainment product. However, regular cricket matches are likely to stay under the previous slab of eighteen percent GST. That way if you attend to watch a regular international or domestic game the ticket prices won't undergo the same steep hike as IPL.

It isn't clear yet whether this extra GST rate would apply to other leagues like Pro Kabaddi League or the Indian Super League. Both these leagues too are becoming popular and fill huge stadiums but the announcement included IPL in particular. Other sport fans also eagerly wait to learn if they too would have to endure increased expenses in the subsequent seasons. For the time being, all eyes are on the IPL as it is the most popular sporting event in India and fetches enormous revenue annually.

Increased ticket prices also have other expenditures many fans tend to ignore. Each time tickets are reserved online an additional convenience fee or service charge is imposed and there are also charges on stadiums. Forty percent GST added to the initial price along with these additional charges makes the final price a lot more than anticipated. This renders the experience of viewing a live IPL match like a luxury instead of a budget-friendly outing. And some enthusiasts might even prefer watching matches on TV or streaming sites over expensing on tickets.

Interestingly as tax burdens have increased for sporting fans movie watchers got a reduction in the same reforms. Cinema tickets worth up to one hundred rupees now attract five percent GST alone from twelve percent. This is a welcome step for film viewers who like to view movies at cinemas as it would render low budget and regional movies accessible to more people. But for tickets priced over one hundred rupees the rate of GST remains at eighteen percent. So the reform is specifically helpful for low-cost viewing experiences.

A further aspect of the reforms was directed towards sports goods. Products such as gloves specifically made for sports will now be charged at a rate of five percent rather than twelve percent. Sports equipment other than routine exercise equipment will also bear the same rate of five percent. This move can motivate players at the local level as material becomes marginally cheaper. While this is good news for would-be competitors it is starkly at variance with the heavier burden of taxation shifted onto spectators who wish to enjoy the high-end sporting spectacles such as the IPL.

The big question now is how the fans will react. The IPL has been increasing in size year on year with glamorous opening ceremonies featuring star cricketers and full houses. The thrill of attending a live game with hundreds of chanting supporters is something the box cannot yet replicate. But if the price continues to hike up more individuals might decide against purchasing tickets and the stands may lose some families and students. If this occurs the league's excitement and accessibility could suffer.

On the other hand the government hopes to raise additional revenue with this increase in tax. The IPL is regarded as a high revenue earning event when sponsorships media rights and tickets fetch enormous amounts of money. Putting it in the highest GST slab, the authorities hope to tap a decent portion of this money. For them it is an attempt at evening out the system as luxury expenditure must pay more taxes.

In the next few months the true effect of this decision will be apparent once the next season of the IPL starts and the fans begin to book tickets. If demand continues strong despite the increased prices then the government action will be vindicated from a revenue perspective. But if ticket prices fall or only a fraction of affluent fans can afford to come to watch it may then raise questions about whether an increase so steep was actually the correct decision.

For the time being the reality still holds that seeing a live IPL match at the stadium just cost more. Fans will have to budget better before going out to support their teams. The reforms have also highlighted the difference between how regular cricket and premium leagues are taxed. While some people support the move as fair others feel it makes the most loved tournament less accessible. One thing is certain the conversation about GST on sports and entertainment is far from over.