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'You’re funding a policy loophole...': A tax planner breaks down real cost of your IPL ticket

'You’re funding a policy loophole...': A tax planner breaks down real cost of your IPL ticket

A ₹4,000 IPL ticket isn’t just for cricket. A tax planner shows you're funding a policy loophole—paying GST on top of entertainment tax.

₹875 of GST is not charged on the base ticket price—but on the subtotal that already includes entertainment tax, the planner says ₹875 of GST is not charged on the base ticket price—but on the subtotal that already includes entertainment tax, the planner says

A ₹4,000 IPL ticket buys more than a seat and stadium buzz. It quietly hands you a crash course in how everyday purchases can carry hidden layers of taxation.

What looks like a single charge is actually two taxes stacked—one on top of the other. And it’s all perfectly legal. You came for the match. You stayed for a lesson in pricing mechanics.

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“Why your ₹4,000 IPL ticket is a mini masterclass in India’s ‘Tax-on-Tax’ policy playbook.

"You’re not just paying to watch the match. You’re funding a policy loophole,” says efiletax, a tax solutions provider, in a post on X.

The post breaks down the math behind that seemingly flat ₹4,000 price tag:

  • Base price: ₹2,343.75
  • Entertainment Tax (25%): ₹781.25
  • Subtotal: ₹3,125.00

GST (28% on subtotal): ₹875

  • CGST: ₹437.50
  • SGST: ₹437.50

That final ₹875 of GST is not charged on the base ticket price—but on the subtotal that already includes entertainment tax. The result? You’re effectively paying tax on another tax.

“GST should be charged on the base value. But when States add Entertainment Tax first, the GST kicks in on top of that too,” the post notes, flagging it as a structural quirk.

And the issue isn’t limited to cricket.

“This isn’t just IPL. Concerts, stand-ups, festivals—same story. Layered taxation wrapped in ‘one nation one tax’ packaging.”

The post also compares global models:

  • US: No GST, occasional amusement tax
  • UK: Flat VAT at 20%
  • India: Entertainment Tax + GST

“So your ₹4,000 ticket? You’re paying for the match… and for a tax design that stacks costs quietly. Next time someone says ‘GST simplified taxes’… Just show them this ticket.”

Published on: Mar 29, 2025, 2:34 PM IST
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