Will IPL tickets become more expensive? How GST Council's new rates will affect world's biggest T20 league

In a landmark decision on Wednesday, the Goods and Service Tax (GST) Council announced revamped rates for a variety of goods besides cutting down on the number of slabs from four to three, with the changes set to be implemented on 22 September.

While daily essential items such as shampoo, soap, hair oil, butter, ghee, utensils are set to become cheaper with individual health and life insurance attracting no GST, a separate 40 per cent slab has been created for sin and luxury goods including tobacco, pan masala, aerated drinks and luxury vehicles.

The new GST rates, which are divided into 0, 5 and 18 per cent slabs besides the special 40 per cent category, will also affect sports fans in India, especially those who follow cricket.

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How new GST rates will affect the IPL

The new GST rates, which were announced by Finance Minister Nirmala Sitharaman after the 56th GST Council meeting on Wednesday, are also set to affect the Indian Premier League by making tickets more expensive going forward.

This is due to the fact that the finance ministry has decided to hike the GST on premium sporting events, which includes the world’s biggest T20 league that has been in existence for 17 years now, from 28 to 40 per cent.

IPL tickets thus has been put in the same category as casinos and other luxury goods – which includes cars larger than 1200cc and 1500cc for petrol and diesel variants respectively.

So if the base price of an IPL ticket is Rs 1,000, a spectator had been paying Rs 1280 with GST under the current norms, which will increase to Rs 1400 once the new rates are in force later this month.

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Will other cricket matches and sporting events also get affected? 

The government has so far only mentioned the IPL in the same breath as casinos and race clubs, and did not mention other cricketing events in India including international matches – whether bilateral or ICC/ACC events.

The announcement also doesn’t make any mention of other leagues in India such as the Indian Super League, Pro Kabaddi League, etc.

The spotlight therefore, is specifically on the IPL for now with tickets set to become more expensive from the 19th edition that takes place next summer.