GST Ruling on Free IPL Tickets Withdrawn After Government Clarification
The GST authority allowed an IPL team owner to withdraw its application on complimentary tickets after government circulars clarified the rules.
- Ruling
- Order No. 05/2018 dated 04.07.2018
- Dated
- 04 Jul 2018
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- IPL team owner asked if GST applies to free complimentary tickets
- Company asked if input tax credit applies to complimentary ticket costs
- Application was dismissed as withdrawn at the company request
- Authority gave no decision on the merits of the case
In short
KPH Dream Cricket Pvt Ltd, operating the Kings XI Punjab IPL team, asked the Madhya Pradesh Authority for Advance Ruling whether giving away free complimentary tickets counts as a taxable supply under Goods and Services Tax (GST). They also asked if input tax credit (ITC) could be claimed on expenses related to those tickets. During the proceedings, the company asked to withdraw the application because the Central Board of Indirect Taxes and Customs (CBIC) issued Circular No. 47/21/2018-GST clarifying the issue.
What has changed
How it worked before
Businesses issuing complimentary tickets or free passes were uncertain whether GST applied to free items and if related input tax credit could be claimed.
What has changed
The authority dismissed Order 05/2018 as withdrawn without expressing any opinion on the taxability of free tickets or eligibility for input tax credit. This order creates no change in tax policy and sets no legal precedent.
Who this affects
Businesses that issue complimentary tickets, event passes, or free samples and want to understand their GST obligations.
What you should do
Do not treat this order as a legal decision on free tickets. Check CBIC Circular No. 47/21/2018-GST dated June 8, 2018, for official tax guidance, and remember that advance rulings bind only the specific business that filed them.
If you do nothing
Assuming this order provides tax relief or a clear exemption on free passes is a mistake. Tax officers will evaluate your business using the CGST Act and relevant government circulars. Relying on a withdrawn application can lead to tax demands, interest, and penalties if your business misapplies the rules.
The terms explained
- complimentary tickets
- Tickets or entry passes provided to guests without charging any money.
- input tax credit
- A mechanism under GST that lets a business deduct the tax paid on business purchases from the tax owed on sales.
- advance ruling
- A written tax clarification given by tax authorities to a specific business about an intended transaction.
The ruling in detail
Authority for Advance Ruling
KPH Dream Cricket Pvt. Ltd.
Order No. 05/2018 dated 04.07.2018 · Madhya Pradesh
Questions before the authority
- Whether free tickets given as "Complimentary tickets" falls within the definition of supply under the CGST Act 2017 and thus whether the Applicant is required to pay GST on such free tickets?
- Whether the Applicant is eligible to claim Input Tax Credit (for short ITC) in respect of complimentary tickets?
Facts
The Applicant is a franchisee of BCCI operating the IPL cricket team Kings XI Punjab and held matches at Indore. It intended to issue complimentary tickets without monetary consideration for public relations and courtesy. The Applicant sought an advance ruling regarding GST liability on these complimentary tickets and its eligibility to claim input tax credit thereon.
Ruling
The application for Advance Ruling was **dismissed as withdrawn** at the request of the Applicant. The Authority did not express any opinion on the merits of the questions raised as the Applicant sought withdrawal following the issuance of CBIC Circular No. 47/21/2018-GST.
Reasoning
During the proceedings, the Applicant submitted a letter stating that the questions posed had been clarified by the CBIC vide Circular No. 47/21/2018-GST dated 08.06.2018. The Applicant requested to withdraw its application without prejudice. The Authority allowed the withdrawal without examining the merits or expressing any opinion on the substantive questions raised.
Provisions relied on
- Section 97(2) of the CGST Act, 2017
- CBIC Circular No. 47/21/2018-GST dated 08.06.2018
For the practitioner
This order merely records the **dismissal of an application as withdrawn** following relevant departmental clarification via a CBIC circular. It does not decide or establish any legal precedent on the taxability of complimentary tickets or associated ITC.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/order_kph_dream_cricket_pvt.ltd.pdf
Legibility of the scan, as read: high.
Prepared 20-10-2026.
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