The redesigned GST structure that was approved on September 3 is expected to increase the cost of Indian Premier League (IPL) match tickets. The GST slab for the IPL will increase from 28% this year to a staggering 40%.

This significant shift would make IPL tickets equal to the GST imposed on casinos and upscale goods. This comes after a recent verdict that would increase the GST fee for expensive athletic events.

It is unclear if leagues like the Pro Kabaddi League or the Indian Super League in football will be included in the same category as the Indian Premier League, which is the most lucrative franchise league in cricket and all of Indian sports.

Fans will now have to pay 400 rupees more for GST for every 1000 rupees they spend on a ticket, a 12% rise from the previous 28% tax rate. In addition to fans looking for general admission tickets to these games, this will have a significant effect on the more costly corporate and hospitality boxes, which are already quite costly in the league's rapidly expanding market.

The change comes after a verdict that keeps these wealthy leagues in the same tax bracket as luxury automobiles, tobacco, and other things, making up for the GST council's reduction in taxes on goods that were considered necessities, like food and household supplies.

The reason behind the 40% GST on IPL tickets is due to the league is categorized as high-end entertainment rather than a sporting activity. For non-league games like internal or international contests, the same is not anticipated. These are anticipated to continue to qualify as sporting events while maintaining their 18% GST rate.

The new GST regulations will come into effect from September 22.

(Hindustan Times input)