How GST will work

After bracketed in highest tax slab, teams may face challenges to adjust price; fans may end up shelling more

- FIROZ MIRZA @Chennai

WITH the government recommending a hike in GST from 28 per cent to 40 per cent to watch IPL matches during the 56th meeting of the Goods and Services Tax Council on Wednesday, fans will be forced to shell out more for tickets from next season. What seems interesting is that IPL is categorised under luxury goods and attracts the same GST as casinos or tobacco.

According to a Ministry of Finance release, "Admission to casinos, race clubs, any place having casinos or race clubs or sporting events like IPL will have GST of 40 percent with ITC (Input Tax Credit)."

The GST Council's recommendation has not only left the fans worried but also the franchises, who set ticket prices for IPL matches with the parent body, BCCI, having no role in it. It might be too early for these franchises to come out in the open and express their opinion but the change in slab has certainly swung them into action and made them plan their next move. "It's too early to comment on the issue. We'll discuss it internally before finalising the future course of action," sources from two franchises told this daily.