GST Applicability & Tax Rates on Sports and Athletics (Accurate & Detailed)

📌 Introduction

The implementation of the Goods and Services Tax (GST) in India on July 1, 2017, brought uniformity and simplification in taxation. The sports and athletics sector, which includes sporting events, coaching, sponsorships, sports goods, and services, is also governed under GST rules. This document provides a precise and updated understanding of GST implications for all stakeholders in the sports industry.

 

1 GST on Sporting Events

✅ Participation Fees

• Rate: 18%
• HSN Code: 9983
• Description: When players pay participation fees to enter sports tournaments, it is considered a service by the organizer and hence taxable under GST at 18%.
• Applicable On: Registration, match organizing, refereeing, etc.

✅ Sponsorship

• Rate: 18%
• HSN Code: 998397
• Description:
• If a business sponsors a team or event (e.g., IPL teams), GST is applicable.
• If the sponsor is a business entity, it must pay GST under Reverse Charge Mechanism (RCM).

✅ Ticket Sales

• Organized by Government Sports Body (like BCCI, IOA, SAI): 18% GST
• Organized by Private Entities: 28% GST
• HSN Code: 998554
• Exemption: If the ticket price is less than ₹250 per person, it is exempt from GST under Notification 12/2017.

2️ GST on Sports Coaching and Training

✅ Coaching Services (Professional/Commercial)

• Rate: 18%
• HSN Code: 999292
• Applicable On: Private sports academies, personal coaching, training services.

✅ Coaching by Charitable or Recognized Institutions

• Rate: Exempt
• Condition:
• The institution must be registered under Section 12AA of the Income Tax Act.
• Coaching should be in recreational or amateur sports, not commercial.

✅ Services to Recognized Sports Bodies

• Services by players, coaches, referees, and team managers to recognized sports bodies (like national federations) for participation in national/international tournaments are GST exempt.

 

3️ GST on Sports Goods and Equipment

✅ Tax Rates Based on Type:

Type of Equipment	GST Rate
General sports items (helmets, kits, gloves)	12% - 18%
Specialized equipment (e.g., for rowing, gymnastics, archery, athletics)	28%
Footwear (up to ₹1,000)	5%
Footwear (above ₹1,000)	18%

• Note: High GST (28%) on professional equipment has increased costs for manufacturers and buyers.

 

4  GST for NGOs and Sports Foundations

• If an NGO or sports foundation organizes sports events, sells tickets, or gets sponsorships, it must charge GST.
• Rate: 18% (on services like sponsorships, match hosting)
• Exemption only if:
• The NGO is registered under 12AA of Income Tax Act.
• The activity is charitable and not commercial.

 

5 Input Tax Credit (ITC)

• Event organizers or academies can claim ITC on GST paid for:
• Ground rentals
• Equipment purchases
• Advertisement & promotion
• Staff salaries (if GST registered)
• Security, transport, etc.
• Note: ITC cannot be claimed under the composition scheme.

 

6 Composition Scheme for Small Taxpayers

• Eligibility:
• Traders/Manufacturers: Turnover up to ₹1.5 Cr
• Service Providers: Turnover up to ₹75 Lakhs
• GST Rate Under Scheme:
• Manufacturers/Traders: 1%
• Service Providers: 6%
• Limitations:
• Cannot issue tax invoices
• Cannot claim ITC

 

7 GST on Amusement & Entertainment Activities

Type of Event/Facility	GST Rate
Amusement parks, water parks, go-karting	18%
Casinos, horse race clubs, betting	28%

 

8 State-Level Entertainment Taxes (Additional to GST in Some States)

Though GST replaced most entertainment taxes, some states still levy additional entertainment taxes in certain sectors:

State	Entertainment Tax
Delhi	20%
Maharashtra	45%
Karnataka	30%
West Bengal	30%
Assam	15–20% (based on ticket price)

 

✅ Summary Table

Category	GST Rate	Remarks
Participation Fees	18%	Player registration & entry
Sponsorship	18%	Paid by companies for branding
Match Tickets (Govt. Bodies)	18%	BCCI, IOA, SAI, etc.
Match Tickets (Private Organizers)	28%	IPL, club matches, etc.
Tickets below ₹250	Exempt	If organized by recognized bodies
Coaching (Professional)	18%	Private academies, freelance coaches
Coaching (Charitable Institutions)	Exempt	Must be Section 12AA registered
Sports Goods	12%–28%	Based on item type and price
Event Sponsorship by NGO	18%	If not purely charitable
Amusement Parks	18%	Entry to water parks, theme parks
Betting, Casinos, Race Clubs	28%	Considered luxury services

 

🔚 Conclusion

The GST structure in the sports sector is diverse and dependent on multiple factors such as the nature of the service, type of organization (government, private, NGO), and pricing. While exemptions exist to promote grassroots and non-commercial sports, professional and commercial activities are taxed at standard or higher rates.

Staying informed and compliant with GST rules ensures smoother operations and avoids legal issues. For large-scale events or academies, consulting a GST professional is highly recommended for filings and exemptions.

 Created & Posted By Mayank Saini