Pre-Budget 2026: Why Live Music Needs GST Relief To Sustain India’s Concert Boom

India’s live music industry is enjoying one of its most defining growth phases yet. From packed stadium shows and multi-city tours to rising global interest in Indian audiences, live entertainment is fast emerging as a powerful cultural and economic engine. But as the sector scales, industry leaders warn that GST rationalisation has become critical to ensure this momentum does not stall under mounting cost pressures.

While demand for live concerts has surged,especially among younger audiences,the economics behind these events remain fragile. High production costs, infrastructure expenses, international logistics, artist fees and compliance requirements already leave promoters operating on narrow margins. Add to this the current GST burden, and the sustainability of large-scale live music events comes into question.

Sanujeet Bhujabal, Managing Director, Universal Music India, underscores the sector’s broader economic importance. “The live entertainment sector is a fast-growing component of India’s ‘orange economy’ and is driven by the power of youth, fandom and the creative sector,” he says. According to Bhujabal, a rationalised GST structure could be transformative,unlocking the potential of large-format concerts, keeping India globally competitive, and ensuring ticket prices remain accessible for the country’s rapidly expanding youth audience. “It would reward the entire value chain of the live entertainment economy, funnelling further growth into the sector,” he adds.

At the operational level, GST is far more than a routine tax consideration. Hamza Kazi, Head of Artist Relations & Development at The Hello Group India, describes it as one of the biggest cost multipliers in live entertainment. “GST is not a marginal line item; it is one of the largest cost multipliers on an already high-risk business,” he explains. With promoters facing unpredictable margins and audiences still transitioning from free or subsidised entertainment to paid live experiences, even small tax changes can have an outsized impact. “A 10 percent tax difference directly affects ticket pricing, attendance, and promoter viability,slowing demand at the very moment the ecosystem is trying to mature,” Kazi notes.

Beyond live events alone, the conversation around GST also intersects with the wider evolution of India’s music and creator economy. Gaurav Dagaonkar, CEO & Co-Founder of Hoopr, highlights the need for regulatory frameworks that reflect how music is created and consumed today. “India’s digital and creator economy is expanding rapidly, and music rights and licensing frameworks must evolve accordingly,” he says. As music becomes central to short-form video, branding, gaming and emerging digital formats, fragmented licensing and regulatory complexity risk holding the ecosystem back.

Dagaonkar emphasises the importance of technology-led, transparent licensing systems supported by a future-ready copyright and legal framework—one that ensures fair compensation for creators while making compliance easier for platforms, brands and users. With AI-generated music and new creative formats gaining momentum, clearly defined ownership and usage norms, along with targeted support for startups and MSMEs, will be crucial to building a globally competitive music ecosystem.

As the Union Budget 2026 approaches, industry stakeholders are united on one message: GST relief for live music is no longer just a sectoral demand, but a strategic economic decision. Rationalising taxation could help India attract more global tours, keep ticket prices in check, strengthen promoter viability, and allow live music to realise its full potential as a driver of culture, employment and creative growth.