IPL PLAYERS AND RCM ON AUCTION MONEY PAID TO THEM

[Sadanand Bulbule]

My deepest condolences to those who died in yesterday’s stampede in Bengaluru during celebrations of RCB victory. My heart and thoughts are with the bereaved families. May their souls rest in peace. 🙏🙏

It is admitted fact that cricketers supply services as an individual to a body corporate (IPL franchise) and their services are sold and bought in the corporate auction held glittering ceremony in five star ambience.

My question here is: Are these IPL Corporate Clubs liable to GST under RCM on the bid amount individually paid to such cricketers?

Experts to throw light on this matter.

Therefore:

• The IPL franchise (company) is liable to pay GST under RCM on the auction money paid to the cricketer if:
  • The cricketer is providing services in their individual capacity, and
  • The franchise is a body corporate (which it typically is).

AI Summary

Reverse charge mechanism exclusion: services of individual sportspersons to corporate franchises are not covered by the notification entry addressing directors.
Whether a corporate franchise must pay GST under the reverse charge mechanism on amounts paid to an individual cricketer hinges on notification scope and supplier status. One view treats auction payments as taxable services by an individual sportsperson making the body corporate the reverse charge recipient. A contrary clarification states the relied-upon notification entry concerns services by directors to their companies and therefore does not extend reverse charge liability to services of individual sportspersons to corporate franchises.