Impact Of GST On Sport Event Tickets And Equipment Prices
The Good and Service Tax was rolled out in India in the year 2017. GST scheme has influenced the various industries that contribute to the economic growth of our country. The sports industry has witnessed several changes with the implementation of the GST scheme. There is an increase in the prices of tickets for various sports events. This new taxation scheme has influenced the cost of sports equipment and other sports accessories. Thus, ticket prices and sports equipment has expensive with the implementation of new GST rates. Sports authorities and entrepreneurs of the sports industry are not happy with the existing GST returns imposed on sports equipment.
How GST Affects Price Of Sport Event Tickets?
With the new GST scheme being rolled out by the Indian government, there are changes in the price of various products. The GST regime has increased the ticket prices as the GST tax rate of 28 % is imposed on the sports event ticket price. The recent sports event like the Indian Premiere League has introduced club culture in sports. These sports event is excellent entertainment for people all over the world. This generates higher revenue for the sports industry. The sports events organized by IPL come under the GST tax slab of 28%. Sports event held by sports bodies like the Indian Cricket Board and Hockey Federation attract the GST rates of 18%.
There is an exemption of GST for sports event ticket that is priced below Rs.250. But there would be only less number of seats available in this price band in most of the stadiums.
There was a recent revision in the GST rates for sport event tickets. Thus, the GST rate of 28% was reduced to 18%. This helped to reduce the ticket prices of a popular sports event like One-day cricket matches, Test matches organized by BCCI and other recognized sports bodies of India.
Thus, with the GST regime, the sports event ticket which cost more than Rs.250 would attract a specific rate of GST.
How GST Influence Price Of Sports Equipment And Accessories?
The Good and Service Tax was implemented to replace the Indirect taxation scheme, which was in use earlier. This tax is imposed based on the concept of one nation one tax. GST regime is expected to create some intense effects in various sectors of the country. Here – https://www.business-standard.com/article/economy-policy/gst-sports-goods-sales-drop-by-60-says-survey-117110300084_1.html – you check out some more info.
With the indirect taxation scheme, the sports equipment and accessories were under the taxation slab of 2%. With the new GST taxation regime, the prices of the sports equipment and accessories increased as the GST slabs were increased to 12% to 28%. This is, of course, bad news for sports players who can afford to buy expensive sports equipment. This would create a negative impact on the growth of the sports sector. The new GST rates on sports equipment have created a controversy on the Government policies. Government has come up with plans to encourage sports in schools and colleges, but the same government has introduced the new GST rates on sports equipment.
Thus, the GST regime introduced by the government would create an impact for both outdoor and indoor games. The new GST taxation schemes have made indoor sports equipment and athletic equipment to cost more. Sports specialists from all over the country wish that government take specific actions so that the sports products are available for a low cost. Tax relaxation is expected on sports equipment and other related accessories. This would help to encourage sports in our country and would offer sports-related materials at low cost.
The above details about the influence of GST on sports event ticket prices and sports equipment.