TaxTMI 
TaxTMI 
IPL PLAYERS AND RCM ON AUCTION MONEY PAID TO THEM
X X X X Extracts X X X X
X X X X Extracts X X X X
....PL PLAYERS AND RCM ON AUCTION MONEY PAID TO THEM<br> Query (Issue) Started By: - Sadanand Bulbule Dated:- 5-6-2025 Last Reply Date:- 6-6-2025 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>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. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....28591;🙏 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 ma....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tter. 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). Reply By YAGAY andSUN: The Reply: In terms of the provisions of the Central Goods and Services Tax Act, 2017, and the Notification No....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 13/2017 - Central Tax (Rate) dated 28th June 2017, services supplied by an individual as a performing artist or sportsperson to a body corporate fall under the ambit of reverse charge mechanism (RCM), subject to specific conditions. As per Entry No. 6 of the aforementioned notification (as amended), where services are provided by an individual sportsperson (including a cricketer) by way of part....
X X X X Extracts X X X X
X X X X Extracts X X X X
....icipation in a sporting event organized by a recognized body or franchise, and such services are received by a body corporate (e.g., IPL franchise), the recipient is liable to discharge GST under RCM. The consideration paid to the cricketer, including the auction amount (retainer or match fees), constitutes taxable supply of services under the heading "services by an individual as a sportsperson."....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Further, the sportsperson is considered to be providing services in their individual capacity and not as a body corporate or through a business entity. The IPL franchise, being a body corporate registered under the Companies Act, 2013, is treated as the recipient of such services and is therefore liable to pay GST under Section 9(3) of the CGST Act, 2017, read with the aforementioned notificatio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n. Thus, it is legally tenable that the IPL franchise shall be liable to pay GST under reverse charge on the auction or bid amount paid to cricketers, provided the cricketer is not himself registered under a corporate entity or supplying through a third-party business. The nature of the auction and the venue of its conduct have no bearing on the applicability of tax; the liability is determined b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ased on the nature of the service, the status of the supplier, and the recipient under law. Reply By Sadanand Bulbule: The Reply: Dear Sir Thanks for your validation. Reply By KASTURI SETHI: The Reply: Dear Sir Ji, Also read the following case law :- 2019 (5) TMI 1171 - CESTAT CHANDIGARH - KPH DREAM CRICKET PVT. LTD. Versus COMMR. OF C. EX. & S.T., CHANDIGARH-I Reply By YAGAY....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... andSUN: The Reply: Upon reviewing the provisions of the Central Goods and Services Tax Act, 2017, and Notification No. 13/2017-Central Tax (Rate) dated 28th June 2017, your assertion regarding the applicability of the Reverse Charge Mechanism (RCM) on services provided by individual sportspersons to a body corporate is substantially correct, with certain clarifications. Analysis of Notification....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... No. 13/2017-Central Tax (Rate), Entry No. 6 Entry No. 6 of Notification No. 13/2017-Central Tax (Rate) stipulates that: "Services supplied by a director of a company or a body corporate to the said company or the body corporate" This entry specifically addresses the services provided by directors to their respective companies or bodies corporate. It does not encompass services rendered by indi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vidual sportspersons to a body corporate. Clarification on Applicability to Individual Sportspersons The services provided by individual sportspersons, such as cricketers participating in events like the Indian Premier League (IPL), are not covered under Entry No. 6. Therefore, the Reverse Charge Mechanism under Section 9(3) of the CGST Act, 2017, as per this notification, does not apply to such....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... services. Conclusion In light of the above, it is concluded that the IPL franchise, as a body corporate, is not liable to pay GST under the Reverse Charge Mechanism for services received from individual sportspersons, including cricketers, participating in the IPL.<br> Discussion Forum - Knowledge Sharing ....