Inequities in India's Taxation: Unfolding the GST Council's Ironies .

 Introduction:

The GST Council in India convenes periodically to discuss and refine tax structures. Each meeting brings forth a mix of positive and negative developments, often revealing new ironies and fallacies within the economy. 

This article sheds light on certain inconsistencies, focusing on the taxation of non-branded atta or wheat, the exemption of cricket games like IPL from GST, and the associated revenue generation.

Taxing Essentials, Exempting Entertainment:

One of the glaring ironies in the Indian tax system is the imposition of GST on non-branded atta or wheat, an essential commodity consumed by the poor. Despite the burden on those struggling to make ends meet, cricket, a form of entertainment, remains exempt from GST. The Board of Control for Cricket in India (BCCI), the governing body of cricket in India, enjoys tax-free status despite being the wealthiest cricket governing body globally.

Example: A daily wage laborer, striving to feed his family, pays GST on every essential commodity he purchases, including food. Meanwhile, cricket, which garners substantial revenue, remains untaxed.

Taxing Fantasy Apps vs. Taxing IPL:

The disparity in taxation becomes even more pronounced when comparing fantasy gaming apps, taxed up to 28%, with the Indian Premier League (IPL), which remains tax-exempt. The IPL, a lucrative sporting event, generates substantial revenues from advertisements and broadcast deals. Despite this, the government does not directly benefit from this income.

Example: The estimated ad revenue of IPL 2023 crossed ₹10,000 crore, yet the government receives no share of this significant sum, while other industries face higher tax rates.

Cricket Promotion vs. Taxpayer's Burden:

The rationale behind the tax exemption for IPL lies in promoting cricket. However, cricket is already a well-established sport in India and enjoys immense popularity. At this stage, it becomes crucial to examine whether the promotion rationale still holds validity, or if the focus should shift towards ensuring that the sport contributes its fair share to the nation's coffers.

Example: As hardworking taxpayers diligently pay their dues to the government, the tax-free status of IPL could be seen as an unfair advantage, especially when other industries face higher taxation.

Conclusion:

The disparities in India's tax structure, as exposed by the GST Council, raise pertinent questions about fairness and equity. While essentials are taxed, entertainment, such as IPL, remains exempt. 

The time has come to reevaluate the tax policies surrounding cricket and ensure that it contributes its due share towards the nation's progress.