GST Council Puts 40% Tax on IPL Tickets, Casinos, Lotteries and Betting From Sept 22 Under New Regime
- 4th September 2025
- 12:00:00 PM
- 3 min read
Summary
The GST Council has introduced a 40% tax slab effective September 22, covering IPL tickets, casino entries, lotteries, betting, gambling, horse racing and online money gaming. This marks a major step in India’s GST reforms, simplifying the structure into two standard rates of 5% and 18% while carving out a separate 40% category for luxury and demerit services.
Mumbai | September 4 – From September 22, consumers will face higher costs for discretionary entertainment and gaming activities as the Goods and Services Tax (GST) Council introduces a steep 40% tax slab for luxury and demerit services. The levy will apply to admission to Indian Premier League (IPL) matches, casino entries, lotteries, betting, horse racing, gambling, and online money gaming.
The decision, taken at the 56th GST Council meeting chaired by Finance Minister Nirmala Sitharaman, is part of a wider restructuring of India’s indirect tax system. The new framework simplifies the current four-tier GST structure into two standard rates of 5% and 18%, while creating a new 40% slab to specifically target non-essential and speculative activities.
What Becomes Costlier
The new 40% GST slab directly impacts high-value and high-profile services:
- IPL tickets for matches and other sporting events not recognised by national or international federations.
- Casino entries, lotteries, horse racing, betting, gambling and online gaming platforms.
In contrast, recognised sporting events remain unaffected at the higher slab. Tickets priced up to ₹500 for such events will continue to be exempt, while those above ₹500 will be taxed at 18%.
Also Read: GST 2.0: Government’s Big Tax Reset — PL Explains How to Reset Your Portfolio
Broader Rate Rationalisation
While the 40% tax raises the cost of discretionary activities, the GST restructuring also reduces rates on essentials. Items such as toiletries, packaged foods, and utensils will now attract 5% GST, down from 18% or 12%. The textile industry has also gained relief with man-made fibre (MMF) and yarn now aligned at a uniform 5% rate, addressing earlier mismatches that blocked working capital.
This dual approach — taxing luxury services heavily while reducing the burden on daily-use goods — reflects the Council’s effort to balance consumer relief with revenue efficiency.
Implementation From September 22
The new rates will take effect on September 22, 2025. According to officials, the rationalisation will lead to an estimated ₹47,700 crore revenue loss from reduced rates, but collections from the new 40% slab on IPL tickets, casinos, betting and gambling are expected to partly offset this shortfall.
The Council emphasised that the reforms aim to simplify compliance, reduce litigation, and bring greater predictability to the indirect tax system. By streamlining slabs, the government expects businesses and consumers alike to benefit from clarity and consistency.
The Road Ahead
The introduction of the 40% slab comes soon after Prime Minister Narendra Modi announced “next-generation GST reforms” in his Independence Day address. The reforms are designed to provide relief to households on everyday items while ensuring that high-value entertainment and gaming services contribute proportionately to tax revenues.
As India enters this new phase of GST, the clear message is that essentials will become cheaper, but discretionary activities like IPL tickets, casino visits, lotteries and online betting will come at a much steeper cost from September 22 onward.
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
