IAAPI Seeks GST Rationalisation to Support Growth of India’s Amusement Sector
NEW DELHI: The Indian Association of Amusement Parks and Industries (IAAPI) has called for rationalisation of the Goods and Services Tax (GST) on amusement and entertainment attractions, saying a lower tax burden could make leisure activities more affordable for consumers while supporting investment and employment in the sector.
According to an industry survey conducted by IAAPI’s Research & Analysis Committee, 84% of operators consider the existing 18% GST rate high, while 62.3% favour a flat 5% GST rate without Input Tax Credit (ITC). Nearly 69% of respondents said they would reduce ticket prices if GST were lowered to 5% without ITC.
The association said the amusement industry faces high operating costs, substantial infrastructure investments and changing consumer spending patterns. It argued that a more rational GST structure could help increase footfalls and strengthen demand.
IAAPI Chairman Ankur Maheshwary said a lower GST rate could create a “win-win” outcome by enabling consumers to access entertainment at more affordable prices while allowing operators to improve facilities, introduce new experiences and expand their businesses.
The survey also indicated that 64.9% of operators expect increased customer demand from a 5% GST rate, while 62.3% anticipate facility expansion, 61% expect revenue growth and 54.5% foresee new investments.
IAAPI said amusement parks are an important part of India’s tourism and entertainment ecosystem and contribute to employment, local businesses and investments. The association has been advocating for GST rationalisation from 18% to 5% as part of its ongoing policy engagement with the government.
The demand comes ahead of the GST Council’s 57th meeting scheduled for September 12, 2026, where various GST-related reforms are expected to be considered. IAAPI said it will continue engaging with policymakers and stakeholders, using industry data and feedback from operators to push for a simpler and more rational tax structure for the amusement sector.
