In September 2025, the Indian government announced what it called a “Deepavali gift” to the nation: a sweeping reform of the Goods and Services Tax system, now branded as GST 2.0.
More than just another adjustment to tax rates, the overhaul represents a major rethinking of how fiscal policy can shape everyday life and nowhere is this clearer than in the sports and recreation sector. The new structure simplifies the earlier four-tier GST into two main categories: 5% for essentials and 18% for most standard items, along with a new 40% slab reserved for luxury and socially harmful goods. For families, athletes, schools, and even major sports leagues, the reform signals a shift in both affordability and accessibility.
One of the most celebrated outcomes of GST 2.0 has been the sharp cut in tax rates on sports and recreational goods. Everyday items like cricket bats, balls, rackets, and protective gear that once attracted 12% GST will now be taxed at only 5%. The same reduction applies to bicycles, board games like chess and carrom, and fishing gear.
The financial difference is immediate. A cricket kit with a pre-GST price of ₹10,000, which used to cost ₹11,200 after tax, will now be sold at ₹10,500. This is more than just a saving it’s a tangible incentive for households to invest in sports equipment.
Schools and community centers are also big winners. Under schemes such as Samagra Shiksha, schools receive grants for equipment; the lower tax rates mean that the same budget can now stretch to purchase more kits, directly benefitting children and grassroots programs.
The Other Side of the Equation: Higher Taxes on Luxury Sports
While the government is offering relief for mass-market goods, it has also created a new 40% “demerit” tax bracket, and it’s hitting the most commercialized corners of the sports industry.
- IPL Tickets: Once taxed at 28%, now attract a 40% levy. A ₹5,000 ticket will cost fans ₹7,000, firmly placing the Indian Premier League in the category of luxury entertainment.
- Luxury Motorcycles and Sports Gear: High-end, non-essential equipment is also pushed into the 40% slab, underscoring the government’s message: community recreation will be encouraged, conspicuous consumption will be taxed heavily.
This approach sends a clear signal sports that build public health are to be supported, while those positioned as expensive entertainment or gambling are to pay their way.
What It Means for Consumers and Businesses
For the everyday Indian, GST 2.0 is a win for affordability. Families can now buy bicycles, toys, and sporting goods at lower prices. Schools and fitness initiatives like Fit India stand to benefit from enhanced accessibility.
For manufacturers and retailers, however, the picture is more mixed. The Retailers Association of India has flagged that footwear and apparel slabs 5% below ₹2,500 and 18% above may encourage under-invoicing, feeding the grey market and hurting organised retail. Domestic producers of mid-range goods also worry that consumers may “buy down” to avoid higher taxes, stunting the growth of quality Indian brands.
Another technical challenge lies in the Input Tax Credit (ITC) system. While the final goods are cheaper, inputs may still attract higher GST rates, creating an imbalance. This could lock up working capital for small manufacturers unless carefully monitored.
Policy Alignment: Sports as a People’s Movement
The cuts in GST rates are closely tied to the vision of the National Sports Policy 2025, which seeks to make sports “a people’s movement.” By reducing costs on equipment and bicycles, the reform lowers one of the biggest barriers to mass participation: affordability. The timing is also strategic. With global sporting ambitions on the rise and the Los Angeles 2028 Olympics on the horizon, the government is making a statement it wants a healthier, fitter, more sport-engaged population. Aligning fiscal policy with sports promotion, the reform strengthens not just households but also India’s long-term sporting ecosystem.
Winners and Losers
The reform essentially divides the sports world into two categories:
- Winners: Families, schools, grassroots programs, and everyday athletes who benefit from cheaper goods.
- Losers: High-end leagues like the IPL, luxury consumers, and online gambling platforms, which now face steep costs.
But even for the IPL, the financial blow may not be decisive. With sponsorships and media rights forming the bulk of revenue, higher ticket prices could be absorbed without derailing profitability. GST 2.0 is ambitious in both design and intent. It uses tax as a lever to encourage fitness, accessibility, and grassroots development, while simultaneously ensuring that commercial sports and luxury consumption contribute a greater share of revenue.
Still, the government will need to stay alert. Issues like price thresholds, grey market risks, and ITC complications could undermine some of the intended benefits. Periodic reviews, coupled with open industry consultation, will be key to ensuring that GST 2.0 strengthens both the economy and India’s sporting culture.
The reform is more than just a tax adjustment it’s a redefinition of priorities. By cutting costs on goods that promote health and community engagement, and raising them on luxury entertainment, the government is reshaping how Indians consume sports and recreation. If implemented effectively, GST 2.0 could make India not only a more sporting nation but also a more fiscally balanced one.
LOWER GST – FUELING PROGRESS IN SPORTS
| ITEMS | FROM | TO |
| Gloves specially designed for use in sports | 12% | 5% |
| Toys like tricycles, scooters, pedal cars etc. (including parts and accessories thereof) [other than electronic toys] | 12% | 5% |
| Playing cards, chess board, carom board and other board games, like ludo, etc. [other than Video game consoles and Machines] | 12% | 5% |
| Sports goods other than articles and equipment for general physical exercise | 12% | 5% |
| Fishing rods, and other line fishing tackle; fish landing nets, butterfly nets and similar nets; decoy “birds” (other than those of heading 9208 or 9705) and similar hunting or shooting requisites. | 12% | 5% |
| Bicycles and other cycles (including delivery tricycles), not motorized | 12% | 5% |
