Here is how the sports industry will be affected by GST

India woke up to a new revolution on Saturday morning, after the much-anticipated Goods and Service Tax (GST) was imposed from the 00:01 of July 1. But with this new system of tax, the prices of sports equipment will go up a notch higher, something that is worrying sportspersons. This includes almost every sport under the sun but there will be those hit the most; one of which is cricket.

Playing cricket will get more expensive as the prices of bats and balls will get higher with 12 percent tax imposed on them. Other equipment like helmets will cost even higher as they come under the bracket of 28 per cent tax. Jatin Sareen, one of the most famous cricket equipment manufacturers in India explained how earlier only 2% excise was levied on bats.

“It is going to increase prices because rates, earlier on bats, was 2 per cent excise,” Jatin Sareen was quoted as saying by the Indian Express. “Now it is 12%. If a bat earlier cost Rs102, now it is going to cost `114. Helmets and gloves will also get more expensive with the tax rates hiked to 28 per cent. So it is going to get even more expensive for the general consumer.” he continued.

Not just cricket, every sport 

He also points out that other sports like boxing, javelin and swimming will become even more expensive as the equipment for these are included in the 28 percent tax bracket. This can become a matter of worry for a budding sportsperson who has to sponsor his/her own needs.

Another indirect effect which is the hike in prices of fitness equipment needed by any sportsperson in any field. These too fall under the 28 per cent tax category. This situation can become difficult for young budding sportspersons thriving on their parents’ income.