IAAPI seeks GST reduction on amusement sector to 5%

Mumbai: The Indian Association of Amusement Parks and Industries (IAAPI) urged the Government of India to slash the Goods and Services Tax (GST) on the amusement sector from present 18% to 5%, citing its importance in strengthening the nation’s emotional well-being and boosting tourism.

IAAPI, the apex body representing amusement parks, water parks, theme parks, snow parks, trampoline parks, and adventure parks, stated that the current 18% GST is discouraging investment and restricting the sector’s growth potential in India.

In comparison, many countries keep taxes on leisure and amusement activities low — 5% in the UAE, Bahrain, Canada, and Japan; 6% in Malaysia; and 7% in Singapore. By contrast, in India, zoos, museums, national parks, war memorials, and melas are exempt from GST.

Highlighting the social impact, IAAPI noted nearly 70% of visitors to amusement parks are school-going children, making these spaces vital for recreation and mental well-being.

“Amusement is not a luxury; it is social infrastructure that touches the daily lives of children and families. Lowering GST to 5% will make joy affordable, attract investments, and position India’s amusement industry as a global tourism powerhouse,” said Ankur Maheshwary, Chairman of IAAPI.

The industry is also a major employment generator, creating jobs for ride operators, technicians, food court staff, retail workers, event managers, and security personnel.

With a GST reduction, IAAPI projects the sector could grow at a 20% CAGR, reaching a market size of ₹30,000 crore by 2030. The association appealed to the government to act urgently to protect jobs, strengthen tourism, and provide affordable avenues of recreation for children and families.