What is necessity for a sportsperson has been treated as luxury under new Goods and Service Tax regime. Sportspersons, traders, manufacturers, sponsors, sports services industry and fan will feel the pinch till the time the benefit of reforms, if any, starts reflecting and flows down.
There is no reprieve or hardly any reprieve for a serious contender –from fan to service provider. Player to end up paying more on their service contracts with leagues. There may be some reprieve on watching the league action in some states, whereas it might become dearer in some other, but watching sports action at home is going to cost more from Friday midnight.
Where there is a reprieve the product is not meant for serious competition, or primarily it’s gadgets for indoor recreation like carom.
Not just tickets, sports fan will end up paying more for all the fun as the service tax previously charged at 15% has been fixed at 18% under the GST regime. Players too will feel the pinch for now they will be paying more on their revenues from endorsements, league tie-ups and services. Media rights to production, each service will cost a little more. Sponsors too will end up paying more on their committed sponsorship figures.
Now pay more for sports goods if you are a serious sportsperson. Skipping rope to javelin – all will invite a hiked levy.
FOOTWEAR CHEAPER – APPAREL DEARER
The sports shoe and apparel industry is an exception to get a certain relief. Consumers, traders and producers for apparels shall be relieved that there is a reprieve on economy range and no additional tax on premium products
However, the experts advocating the cause of single tax regime are confident that the good impact of the revised taxation shall become effective over a period of time, leading to lesser tax rates and reprieve from the layering of multiple taxes.