The government has reduced the Goods and Services Tax on amusements parks and events such as circus, pageants, drama, functions and concerts.
While the GST rate on amusements parks has been reduced to 18% from 28%, all ticket sales of up to Rs 500 each for events has been made GST free.
The new rate of 18% will apply to theme parks, water parks, joy rides, merry-go-rounds, go-carting and ballet.
The exemption of up-to Rs 500 will apply to circus, dance, theatrical performances including drama or dance, award functions, pageants, concerts, musical performances, and recognized sporting events, the government said.
“Requests were received from several quarters that amusement parks promote social wellness and beget fun and learning for children and their families in a real active entertainment and therefore, the rate may be reduced to 18%,” the ministry of finance said.
“It is expected and hoped that States do not raise the tax on entertainment and amusement levied by the local authorities (Panchayats/ Municipalities/ District Councils) so as to increase the tax burden on the amusement parks. This will ensure that the rate cut in GST is passed on to the children and families,” it added.