Exemptions for Sports related Services & Pure Labour Contract Services

Exemptions for Sports related Services & Pure Labour Contract Services

In addition to the service of the labour contract, GST applies to all goods and services. Various types of labour contracts are classified in this article, along with the GST that applies to them. Our country's sports industry is one of the fastest-growing industries. A wide variety of organizations conduct sporting events, including the government and the private sector.

Among the major sports events held in India are the Indian Premier League (IPL), the Pro Kabaddi League (PKL), and the Indian Super League (ISL). Ticket sales, sponsorship fees, and participation fees provide income for these organizations. Specifically, we will examine the impact of GST on the incomes discussed above. 

Exemptions available on labour charges :

According to Notification no.12/2017 dated 28th June 2017, the following services of the pure labour contract are exempt from GST: 

  • Work performed on a single residential unit that is not part of a residential complex, such as construction, erection, commissioning, or installation of original works.
  • Under the housing for all (urban) mission or Pradhan Mantri Awas Yojana, you may provide services such as construction/ erection/ commissioning /installation/ completion/ fitting out/repair/maintenance/renovation or alteration of a civil structure or any other original work related to the construction or enhancement of beneficiary-led individual houses.  

Exemptions for Sports Events

Here is a list of GST exemptions for sports organizations 

  1. An organization that provides training or coaching in arts, culture, or sports is exempt under Section 12AA of the Income Tax Act.
  2. Sponsorship of sports events organized by:
  3. National sports federation, or its affiliated federation
  • Association of Indian Universities, Inter-University Sports Board, School Games Federation of India
  • Central Civil Services Cultural and Sport Board
  • Indian Olympic Association
  • Panchayat Yuva Kreeda Aur Khel Abhiyaan Scheme
  1. The following services are provided to 'recognised' sports bodies:
    • Participants in sporting events organised by 'recognized' sports bodies as players, referees, umpires, coaches.
    • Among the recognized sports bodies are the Indian Olympic Association, the Sports Association of India, and the International Olympic Committee.


BY: Admin Tax4wealth

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