GST revision: Moviegoers get relief in small screens, IPL goers face 40% rate for match tickets

The Goods and Services Tax (GST) Council, led by FM Nirmala Sitharaman, has announced significant changes in tax rates for entertainment and sporting events, raising levies on high-profile properties such as the Indian Premier League (IPL) while offering relief to cinema-goers purchasing low-value tickets.

Under the revised structure, admission to IPL matches and other non-recognised sporting events will now attract 40% GST with input tax credit (ITC), up from 28% earlier. This sharp hike places IPL tickets in the same tax bracket as casinos and race clubs, making the popular cricket league more expensive for fans. A basic ticket of Rs 1,000, for instance, will now cost around Rs 1,400 after GST.

However, the Council has clarified that this higher rate will not apply to recognised sporting events. For such events, tickets priced up to Rs 500 remain exempt from GST, while those above Rs 500 will continue to be taxed at the standard rate of 18%. This ensures that community-level and officially recognised sports are not burdened by the steep levy imposed on marquee entertainment properties.

Cinema enthusiasts, meanwhile, stand to gain from the revisions. Tickets priced up to Rs 100 will now be taxed at just 5% with ITC, down from 12% earlier. This reduction is aimed at making movies more affordable for the mass audience that largely depends on lower-priced tickets. For higher-value tickets, however, the 18% GST rate with ITC remains unchanged. GST rates on movie tickets priced above ₹100 remain unchanged under the revised tax structure. Such tickets, which previously attracted 18% GST, will continue to be taxed at the same rate under the new slabs.

The government, in its FAQs, explained its rationale by stating, “Admission to sporting events like IPL will attract 40% GST. However, this rate does not apply to recognised sporting events.” The clarification ensures a clear distinction between commercial sporting extravaganzas and recognised sports that encourage wider participation.

With these changes, while cricket fans may need to shell out more to watch their favourite IPL teams live in action, movie-goers with budget tickets will enjoy a respite. The move underscores the Council’s attempt to balance revenue needs with accessibility, taxing premium entertainment at higher rates while easing the burden on affordable cultural and recreational activities.