40% GST Blow to IPL? Franchises Fight to Escape ‘Sin Goods’ Tag and Cut Ticket Tax

In order to reduce the goods and services tax (GST) on match tickets from 40% to 18%, Indian Premier League (IPL) clubs have requested that the finance ministry regard the tournament's cricket matches as sporting events rather than entertainment. This will make it comparable to tickets for international cricket matches held by the Board of Control for Cricket in India (BCCI).

Before the 2025 GST revision, there was a 28% tax on IPL tickets along with a 12% tax on recognized sporting events. The introduction of demerit goods, or sin goods, the previous year, which had a swooping 40% GST rate and included IPL, made matters worse for the teams.The franchises have hence urged the GST council to reconsider the inclusion of IPL under sin goods for activities like betting, gambling, and lottery, along with tobacco needing to be disincentivized.

“Sporting events such as IPL constitute a form of healthy family entertainment enjoyed by a wide cross-section of society,” said the representation, adding that treating admission to IPL matches in a manner similar to casinos and gambling is “neither justified nor consistent with policy rationale.”

“Taxing entry to IPL-like sports events at 40%, akin to sin goods and services like casinos and betting, negatively impacts the sports ecosystem, which is basic to the growth of the economy and development of sports in the country,” said EY partner Bipin Sapra.

Amongst all the other sporting leagues like soccer, basketball, etc., India is uniquely positioned to have the leadership position in cricket,” said Price Waterhouse & Co. LLP partner Pratik Jain. “Charging the highest rate may impact the growth potential as new markets like the US, Saudi Arabia, etc. are looking to make inroads.”