Quick Summary
A recent social media post has ignited a heated debate over the steep taxation on Indian Premier League (IPL) tickets, particularly after a Chennai Super Kings (CSK) vs Royal Challengers Bengaluru (RCB) match at Chennai's MA Chidambaram Stadium. A cricket fan, Ravi Handa, pointed out that a ticket with a base price of Rs 2,343 was sold for Rs 4,000 after taxes, effectively imposing over 70% tax on the ticket price. Breakdown of Taxes on IPL Tickets According to the ticket details, the additi
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FAQ :
The high prices are mainly due to a 'tax-on-tax' situation, where Tamil Nadu's 25% Entertainment Tax is levied before the Central GST (CGST) and State GST (SGST) are applied.
Some fans are facing over a 70% tax burden, as seen with a ticket base price of Rs 2,343 being sold for Rs 4,000 after taxes.
While Entertainment Tax was meant to be subsumed under GST, the Tamil Nadu government levies it separately, leading to the additional charge.
No, the BCCI enjoys a 100% tax exemption on its IPL earnings, as it is registered as a charitable organisation promoting cricket.
Indian players pay 10% Tax Deducted at Source (TDS), while foreign players face a higher 20% TDS rate.
With the GST Council periodically reviewing tax structures, there is hope for a reconsideration of how entertainment taxation is applied to popular events like the IPL.
CAclubindia
