This article is a ready reference of all the exemptions available to Sports and its allied services under GST law. Notification No. 12/ 2017- Central Tax (Rate) dated 28th June, 2017 (as amended from time to time) (exemption Notification) describes exemption on supply of services. HSNs for the same also are derived through this notification only. In regard to sport related services, exemption has been provided under six different entries in the exemption notification.
Exemption Notification to be interpreted strictly
Author wishes to supply greater emphasis to the established principle of law by the Apex Court In the case of Commissioner of Customs (Import), Mumbai v. Dilip Kumar & Company SC JULY 30, 2018, 2018] 95 taxmann.com 327 (SC), It was decided by the apex court that Where there is an ambiguity on interpretation of tax exemption provisions/Notifications, as to its applicability with respect to entitlement of assessee or rate of tax to be applied, such exemption notification should be interpreted strictly, and burden of proving applicability would be on assessee to show that his case comes within parameters of exemption clause or exemption notification.
Apex court also Held, when there is ambiguity in exemption notification which is subject to strict interpretation, benefit of such ambiguity cannot be claimed by subject / assessee and it must be interpreted in favor of revenue/State.
List of GST Exemptions for Sports related Services
| Category | S.I. No. | Chapter, Section, Heading, Group or Service Code | Description of service | Rate | Condition |
| Sports related | 9A | Chapter 99 | Services provided by and to Fédération Internationale de Football Association (FIFA) and its subsidiaries directly or indirectly related to any of the events under FIFA U-17 World Cup 2017 to be hosted in India. | Nil | Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 World Cup 2017.] |
| 9AA | Chapter 99 | Services provided by and to Fédération Internationale de Football Association (FIFA) and its subsidiaries directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2017 to be hosted in India. | Nil | Provided that Director (Sports), Ministry of Youth Affairs and Sports certifies that the services are directly or indirectly related to any of the events under FIFA U-17 Women’s World Cup 2017.] | |
| 53 | Heading 9985 | Services by way of sponsorship of sporting events organised by – a national sports federation, or its affiliated federations, where the participating teams or individuals represent any district, State, zone or country; Association of Indian Universities, Inter-University Sports Board, School Games Federation of India, All India Sports Council for the Deaf, Paralympic Committee of India or Special Olympics Bharat; the Central Civil Services Cultural and Sports Board; as part of national games, by the Indian Olympic Association; under the Panchayat Yuva Kreeda Aur Khel Abhiyaan Scheme | Nil | Nil | |
| 68 | Heading 9992 or Heading 9996 | Services provided to a recognized sports body by – an individual as a player, referee, umpire, coach or team manager for participation in a sporting event organised by a recognized sports body; another recognized sports body | Nil | Nil | |
| 82 | Heading 9996 | Services by way of right to admission to the events organised under FIFA U-17 World Cup 2017. | Nil | Nil | |
| 82A | Heading 9996 | Services by way of right to admission to the events organised under FIFA U-17 Women’s World Cup 2020. | Nil | Nil |
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CA. Rajender Arora is FCA, Law Graduate and M.Com, Managing Partner of Spark & Associates and National head GST division in the firm, Prolific speaker and vivid reader. YouTuber, YouTube channel named “GST की राह मे, आपका दोस्त CA RAJENDER ARORA”, Knowledge partner with Clear Tax, Tax4Wealth and Tally. He has written numerous articles on GST on leading portals.
