IAAPI Calls for GST Rationalisation to Support Growth and Consumer Demand in India’s Amusement Industry
GST
Dated:- 3-9-2026
PTI
Industry survey highlights strong support for a 5% GST rate without ITC, with operators expecting lower ticket prices, higher footfalls and fresh investments New Delhi, September 2026: For families looking to spend a weekend at an amusement park, water park or indoor entertainment centre, ticket prices are often an important part of the decision. For the businesses operating these attractions, however, the equation is more complex. High operating costs, significant investments in infrastructure and changing consumer spending patterns continue to put pressure on the industry.
Against this backdrop, the Indian Association of Amusement Parks and Industries (IAAPI) is calling for a more rational GST structure for the amusement industry. The association believes that bringing down the GST burden can help make entertainment more affordable for con
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y operators, particularly smaller and mid-sized businesses, the current GST structure adds to the pressure on an already capital-intensive business. A more rational rate can create a win-win situation — consumers can benefit through more affordable tickets, while operators can focus on improving their facilities, creating new experiences and expanding their businesses.” Notably, overwhelming majority (approx. 80%) of the visitors to amusement parks belong to middle and lower-middle-class households, the very demographic that the GST 2.0 reforms sought to protect. Present GST rate adversely impacts footfall, muting customer demand.
Amusement parks are an integral part of the tourism industry and contribute significantly to the growth of tourism, employment, local businesses, and the overall economy. However, the sector is treated unequally compared with other important components of the tourism industry, such as hotels and airlines. Hotel accommodation with room rent up to ?7,5
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cted impact goes beyond ticket prices. 64.9% of operators identified increased customer demand as a key benefit of a 5% GST rate, while 62.3% expect facility expansion, 61% anticipate revenue growth and 54.5% see the possibility of new investments in projects.
What stands out from the survey is that the industry is not looking at GST rationalization simply as a way to improve margins. Operators are looking at it as an opportunity to attract more customers, reinvest in their facilities and build a stronger amusement ecosystem.” IAAPI believes that a simpler and more rational GST structure can support the industry's growth while making leisure and entertainment more accessible to consumers. The association will continue to engage with policymakers and stakeholders, using industry data and member feedback to make a constructive case for GST reform.
(Disclaimer: The above press release comes to you under an arrangement with NRDPL and PTI takes no editorial responsibility for the
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