The amusement theme park industry is urging to lower the GST rate slab it has been placed under. GST Council levied 28% GST rate on the industry which would negatively affect its growth and discourage new entrants in the industry.
The amusement park industry is highly capital intensive in nature and requires huge investment to the tune of Rs 700 crores for mega parks and Rs 100 crores for mid-sized parks. Furthermore, since theme parks are seasonal businesses, they must operate at full capacity even during off seasons.
Earlier, around a year ago, the tax rates levied in most states was negligible however, 15 per cent service tax was levied. Now the present GST rate of 28% per cent would put a huge burden on the industry and significantly reduce theme parks profitability.