IAAPI Calls for GST Rationalisation for the Amusement Industry
On 2 September 2026, the Indian Association of Amusement Parks and Industries (IAAPI) released a press statement in New Delhi urging the government to adopt a more rational Goods and Services Tax (GST) structure for amusement parks, water parks and indoor entertainment centres.
IAAPI’s Research & Analysis Committee conducted a survey of its member operators across the country. Eighty‑four percent of respondents described the existing 18 % GST rate as high, and 62.3 % indicated a preference for a flat 5 % GST rate without Input Tax Credit (ITC).
The survey revealed that 69 % of operators would reduce ticket prices if GST were lowered to 5 % without ITC, potentially making visits more affordable for families. In addition, 64.9 % expect increased customer demand, 62.3 % anticipate facility expansion, 61 % foresee revenue growth, and 54.5 % see the possibility of new investments in projects.
Operators also highlighted the limited benefit of the current ITC mechanism: 63.6 % reported offsetting less than 25 % of their GST liability through ITC. Moreover, 61 % of respondents disclosed annual turnover below Rs 25 crore, underscoring the predominance of small and mid‑sized businesses in the sector.
IAAPI pointed out a tax disparity within the tourism ecosystem. Hotel accommodation with room rent up to ₹7,500 and economy‑class airfare are taxed at 5 % GST, whereas amusement park tickets, which typically range from ₹500 to ₹1,800 during peak seasons, are subject to 18 % GST. The association argues that this differential places an additional burden on the amusement industry and reduces its competitiveness.
The association noted that approximately 80 % of amusement park visitors belong to middle‑ and lower‑middle‑class households, the very demographic that GST 2.0 reforms aim to protect. Amusement parks contribute to tourism growth, employment, local business activity and the broader economy, yet they are treated unequally compared with hotels and airlines.
Chairman Ankur Maheshwary stated that a more rational GST rate would create a win‑win situation: consumers would benefit from cheaper tickets while operators could focus on improving facilities, creating new experiences and expanding their businesses. IAAPI pledged to continue engaging with policymakers and stakeholders, using the survey data and member feedback to make a constructive case for GST reform.