Dreams, you dream of watching a live cricket match in person? Of course, who wouldn’t if tickets were worth ₹2,343.75? Excited to see this price? If your answer is yes, then you might not jump with excitement already. Why? Because the taxman is here to charge you ₹1,656.25 extra for the same ticket, and magically you will end up paying ₹4,000. Frowning already? This is exactly what cricket fans have been experiencing when they are booking their tickets and this is how 70% taxes are silencing stadium cheers for all of us.
Corporate Soldiers has brought you this money heist. Wait, we forgot, it is ‘The Great IPL Ticket Heist’.
IPL- Tax Exempt Then Why Such Hefty Taxes?
Those who are reading this for the first time, let Corporate Soldiers tell you that IPL as an entity pays no direct taxes on its massive earnings. Why? Because it is promoting sports and thus, it is not liable for taxes. While tickets are subject to a 28% GST and some state taxes as well. Thus, fans are angry and disappointed asking ‘Why are we paying hefty taxes for tickets when the league itself is exempt?’
This taxation of IPL tickets has become a reason why every cricket fan is voicing out on various social media platforms whether it is Reddit, Instagram, Facebook or even LinkedIn. Cricket fans are questioning this paradox of tax exemption over and over, ‘Why our pockets are burning while you are massively earning?’
So, What’s This Tax Structure on IPL Tickets?
Not many people are aware that IPL tickets fall under the higher GST slab of 28%, but they are categorized as entertainment events. Thus, this high GST charge terms IPL as a commercial entertainment venture rather than a purely sporting event. How so? Well, if you look at International cricket tournaments organized by the BCCI, they are subject to 18% GST. Now, tell us our dear fan, is this difference clear to you? This is where your favourite IPL becomes a commercial event. But wait, there are more taxes than this GST.
The Deciding Factor:
The main reason is your state’s entertainment tax and GST, they altogether make this increase in price. It starts with a base price then the state governments levy entertainment tax as a percentage of that initial cost. Now, each state differs when it comes to entertainment tax. In some states, it is on the higher side while in some states it is on the lower side. However, Delhi and Punjab charge no entertainment tax on your IPL ticket.
In the end, GST at 28% is applied to your ticket, not just to the base price, but to the sum of the base price and the entertainment tax. So, overall you end up paying the increased final cost of a ticket as per these taxation rules. See, what charges are you paying for this hiked ticket?
| State | Base Price/ Ticket ₹ | Entertainment Tax | GST | Final Price/Ticket₹ |
| Delhi | 2,343.75 | No Tax | 656.25 | 3,000 |
| U.P. | 2,343.75 | 585.94 | 823.13 | 3,752.82 |
| Maharashtra | 2,343.75 | 1054.69 | 951.56 | 4,350 |
| Bengaluru | 2,343.75 | 234.38 | 723.00 | 3,301.13 |
Seems unfair? Yes, it definitely is unfair since this whole situation is creating an imbalance where fans are burning their pockets while the organizing body enjoys tax-free earnings.
Now, Let’s Understand The Tax-Exempt Status of BCCI
Cricket fans, you must already be aware that the ‘Board of Control for Cricket in India’ (BCCI) falls under Section 12A of India’s Income Tax Act as a charitable organization. Your favourite league, IPL is organized by BCCI.
- Though IPL has a commercial structure, its primary objective remains to promote cricket.
- Since profits are reinvested in cricket development, the BCCI can retain its tax-free status.
These two key points make these two entities tax-free.
No Tax, High Revenue- IPL
Fans, while you are burning your pockets, IPL is filling up the pockets. As you are already aware the IPL is one of the most lucrative sports leagues globally and last year, in 2024 their brand value exceeded ₹1 lakh crore. Not only this, its media rights alone generate ₹12,000 crore per season. Shocked? Wait, until we tell you more about it. The combined revenue of all IPL teams stood at ₹6,797 crore by the end of year 2024.
You might have already done your calculations for taxes but the truth is the BCCI pays no corporate taxes on IPL earnings. Instead, its contribution to government revenue comes indirectly through ticket sales, sponsorship and TDS on player salaries. So, why the need for tax when it’s already platinum for government? Look, how much revenue it generated in year 2024.
| Source of Revenue | Financial Year | Amount |
| GST on Ticket Sales & Sponsorship | FY 2023-2024 | 1019 crore |
| Total GST Contribution | FY 2022-2023FY 2023-2024 | 2,038 crore |
| TDS on Player Salaries | 2025 | 89.49 crore |
The Repercussions?
Though justifications are already in such as these high taxes on IPL tickets are a way to generate revenue from one of India’s most popular events. It is for the country’s growth etc., however, it is important to note that it’s the fans who are suffering the most. Since the league itself is exempt from direct taxes and ticket buyers indirectly fund government revenues through GST and state-level levies, the disappointment and anger are obvious. Corporate Soldiers feels that repercussions will follow such as-
- Many fans will opt out from attending matches due to these inflated ticket costs.
- Of course, black market ticket sales will thrive.
- There will be less ‘On Stadium Attendance’.
- Fans will prefer watching matches on OTT platforms or television to avoid such hefty costs.
The paradox has begun and repercussions will follow. While fans pay hefty taxes for IPL tickets, the league maintains its ‘charitable’ status. This paradox has invited each of us to question about not the fairness in taxation policies. Unless reforms are introduced to balance, the future of cricket amongst fans looks blurry and bleak. Let’s see how many fans will still fill the gaps in stadiums and cheer their hearts out. With these words, Corporate Soldiers signs out and wait, which team are you supporting? Let us know!
