State slashes GST on amusement park tickets to 10 per cent from 28 per cent
Representational picture
From January 25, amusement park visitors might be able to avail tickets at a cheaper rate than before. Ahead of the Union Budget, the GST Council on Thursday moved to cut tax rates on 29 goods and 54 services - one of which happens to be the tax implemented on amusement parks, water parks, and go-karting among others. Last July, GST was implemented at 28 per cent on the same, putting joyrides in the same bracket as racecourses and gambling joints. However, after Thursday's council meet, the GST rate has been slashed to 10 per cent.
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Sigh of relief
"This will help us to reduce some part of the ticket rates, and increase the footfall at our parks," said Shirish Deshpande, president, Indian Association of Amusement Parks and Industries (IAAPI). "We were not being able to reduce the ticket prices, especially for students, who comprise nearly 50 per cent of our annual footfall. We were just sustaining, and not able to save any money."
Deshpande explained that there had been a slump in earnings over the past two years for the amusement park industry. "Before 2015, we were not charged service tax, only entertainment tax. But in 2015, the government implemented a service charge of 15 per cent along with the already existing entertainment tax. And then, last year in July, GST was implemented at 28 per cent."
Welcome cut
After various meetings at the state and central level, the central government and GST council finally slashed the rate to 10 per cent. The revised GST rates will be implemented on January 25. "Now, a 10 per cent GST will help to boost business in 2018-19, by at least 5 to 10 per cent. After a long time, the government has given some respite to the industry, and we are thankful for it," said Deshpande.
Taxing times
Last July, 28% GST was implemented, putting joyrides in the same bracket as racecourses and gambling joints.
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Amusement parks in state registered with IAAPI
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