GST applicable on free IPL tickets

The Authority for Advance Ruling (AAR) has ruled that Free or complementary tickets given by franchise owners for IPL matches will attract GST

In response to an application filed by K P H Dream Cricket Pvt Ltd, which owns and operates IPL cricket team Kings XI Punjab, the Punjab bench of the AAR has ruled that providing complementary tickets free of charge would be considered supply of service and therefore leviable to tax. The GST rate on sale of IPL tickets is 18 per cent.

The AAR also ruled that K P H Dream Cricket would be eligible to claim input tax credit (ITC) on taxes paid for such complementary tickets only to the extent of input and input service for such tickets.

The AAR said when the applicant issues a ‘complimentary ticket’ to any person, the applicant is “certainly displaying an act of forbearance by tolerating persons who are receiving the services provided by the applicant without paying any money, which other persons not receiving such complimentary tickets would have to pay for”.