How will GST affect the sports industry in India?
The Goods and Service Tax (GST) is all set to roll-out in India from 1st July, 2017. With the Harmonised System Nomenclature being used to divide the goods in various categories, the GST rates have been fixed at 0%, 5%, 12%, 18% and 28%. Let us have a look on how GST will affect the sports industry in India.
Ticket prices to get expensive?
Club sport events like the Indian Premier League are set to be taxed at 28%, thereby increasing the ticket prices. Other events by the recognized sports governing bodies in India like the Board of Control for Cricket in India, Hockey India, Badminton Association of India, etc will attract the tax slab of 18% on their tickets.
No tax on tickets less than Rs. 250
Tickets below Rs 250 have been exempted from the GST and will not attract any tax. However, since few tickets are ever priced below Rs. 250, this limit is being considered less by the fans.
Sports equipment to get expensive
The government has decided to put the sports goods manufacturing industry into the 12%-28% tax slab, thus increasing the prices of the sports equipment. The decision has drawn criticism from the entrepreneurs in the field, as they currently pay tax at just 2%. The step has also irked the sports authorities who believe that sports equipment should be cheap for the players.
There should be no tax on sports equipment: Krishna Poonia
2010 Commonwealth Games medalist Krishna Poonia said that there should not be any tax on sports goods. She added, "We should make quality equipment available to youngsters at the grassroots and not when they reach the top."
