2 days Ago By Ram Sundaram
Chennai: A growing number of IPL fans have flagged discrepancies in the tax breakup of tickets sold for matches at the M A Chidambaram Stadium, Chepauk, during the ongoing Indian Premier League (IPL) season. The issue came to light after several fans raised concerns that taxes charged appeared to exceed the state-mandated limits. In Tamil Nadu, entertainment tax is fixed at 25% of the base ticket price.
However, a closer examination by TOI of more than a dozen tickets issued for the recent Chennai Super Kings (CSK) vs Royal Challengers Bangalore (RCB) match revealed mismatches in tax calculations. For instance, on a ticket with a base price of 2,343, the expected entertainment tax should be 585. But ticket buyers were charged 781, an unexplained markup of 196.
Compounding the issue is the application of GST on the subtotal that includes both the base price and entertainment tax. This has led to a situation where buyers are effectively paying tax on a tax, inflating the overall ticket cost further. Legal clarity came from advocate Raghavan Ramabadharan of the Madras Tax Bar, who said that under Section 15(2) of the Central GST Act, any non-GST tax, such as entertainment tax, can be included in the value of supply.
He cited the 1979 Supreme Court judgment in the Hindustan Sugar Mills case, which established that supplier-incurred costs passed to the buyer — such as freight or excise — are part of the taxable value, a precedent now shaping GST applications in entertainment sectors. Some tickets now show a combined tax load nearing 70% of the total price, sparking demands for accountability from organisers. Chennai Super Kings has remained silent despite repeated questions on whether it plays any role in setting ticket prices or approving the tax structure.
Frustrated fans are calling for an itemised breakup. Not everyone views the current system as flawed. "IPL is pure entertainment, not an essential service.
Govts are well within their rights to treat it as a high-revenue opportunity through taxation, just like they do with movies or concerts," said R Srinivasan, a Chennai-based chartered accountant. Get the latest lifestyle updates on Times of India, along with EID Wishes , Messages and quotes !.
