BCCI GST Payment: Rs 2,038 Crore in FY23 and FY24
By: Admin|August 07, 2024|Categories: GST Recent News
Introduction
Recently, in a notification to Parliament, Minister of State for Finance Pankaj Chaudhary disclosed significant financial details regarding the Board of Control for Cricket in India (BCCI). The apex body governing cricket in India, BCCI, has been a subject of scrutiny in terms of its financial contributions and tax obligations under Indian law.
Gross GST Revenue Collection
During the fiscal years 2022-23 and 2023-24, the BCCI contributed immensely to the national coffers through Goods and Services Tax (GST). According to Minister Chaudhary, the gross GST revenue collected from BCCI amounted to a staggering Rs 2,038.55 crore. This revenue was primarily generated from services related to admission to sporting events, notably including the lucrative Indian Premier League (IPL). Under current tax regulations, such services attract a GST rate of 28%.
Legal Status and Tax Exemption Issues
Minister Chaudhary also highlighted the legal status of BCCI, noting that it operates as an autonomous body registered under the Tamil Nadu Societies Registration Act, 1975. Despite its autonomy, BCCI has been embroiled in a legal dispute concerning tax exemptions. Specifically, the Income Tax department has contested BCCI’s claim for exemption under Section 11 of the Income Tax Act, 1961, which deals with provisions for charitable institutions. The matter is currently sub judice, indicating that the final decision rests with the judiciary.
Government’s Position and Tax Evasion Concerns
Addressing concerns over tax evasion in a broader context, Minister Chaudhary provided statistics on GST evasion cases in Gujarat. From July 2017 to June 2024, Central Tax formations in Gujarat detected a staggering 13,494 cases of GST evasion, amounting to approximately Rs 52,394 crore. These cases resulted in the arrest of 214 individuals involved in the evasion schemes.
Conclusion
In conclusion, the financial contributions of BCCI through GST underline its significant economic footprint in India’s sporting landscape. However, ongoing legal disputes regarding tax exemptions reflect broader issues concerning the interpretation and application of tax laws in relation to sports organizations. As the matter remains under judicial review, the final decision will have implications not only for BCCI but potentially for other similar bodies in India.
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