GST on salon services is now 5% without input tax credit: hair care, beauty treatment, spa, massage, gyms, fitness centres, yoga and health clubs all moved from 18% to 5% under the reform. The catch is that salons and gyms charging 5% cannot take credit of GST on their rent, equipment and products.
Laundry and dry cleaning and other services not classified elsewhere stay at 18%. This page explains the codes, a salon bill, product sales at the counter and the credit question. Other services are on the SAC code hub.
Salon, gym and other services: codes and GST rates
Item / SAC / GST- Hair cutting and hair care at salons5% (no ITC)SAC 999721
- Beauty treatment, facials, make-up5% (no ITC)SAC 999722
- Spa and massage services5% (no ITC)Physical well-being
- Gyms and fitness centres5% (no ITC)Including membership fees
- Yoga centres and health clubs5% (no ITC)Group 99972
- Laundry and dry cleaning18%SAC 99971
- Pest control and other services18%SAC 999799 or 9985
- Other services n.e.c.18%SAC 999799
Quick facts
SAC heading
9997: other servicesBeauty and fitness
5% without input tax creditRate before the reform
18%Laundry
18%Digits to print
4 digits up to Rs 5 crore turnover, 6 aboveProducts sold over the counter
Goods rate of each product
Gst on salon services: 9997 hsn code and rates
| Code | Service | GST |
|---|---|---|
| 999711 to 999719 | Washing, cleaning, dyeing, laundry | 18% |
| 999721 | Hairdressing and barbers | 5% (no ITC) |
| 999722 | Cosmetic treatment, manicure, pedicure | 5% (no ITC) |
| 999723 | Physical well-being: spa, massage, fitness | 5% (no ITC) |
| 999729 | Other beauty treatment services | 5% (no ITC) |
| 999791 to 999799 | Other miscellaneous services | 18% |
Gst on gym membership
Gym memberships, personal training sessions and yoga classes are physical well-being services at 5% without credit. A gym inside a hotel or club that bundles it with other services may need to look at the composite supply rules. Before the reform, gym memberships carried 18%.
Salon bill example
Salon bill inside the state: Haircut and hair spa, SAC 999721, Rs 1,200. Facial, SAC 999722, Rs 1,800. Taxable value Rs 3,000. CGST 2.5% Rs 75. SGST 2.5% Rs 75. Total Rs 3,150.
Products sold at the salon counter
Shampoos, hair oils and creams sold to customers to take home are goods, taxed at their own rates: shampoo and hair oil 5%, most creams and hair colours 18%. Products used in the service are part of the service at 5%. See shampoo and hair oil and cosmetics.
No credit at 5%
The 5% entry for beauty and physical well-being does not allow input tax credit on goods and services used to supply them. A salon cannot set off GST paid on rent, chairs, dryers, products or franchise fees. This is a cost to be built into prices. Salons that also sell products as goods can take credit on stock bought for resale, since those sales are taxed separately.
Other services hsn code: laundry, 999799 and pest control
Laundry, dry cleaning and ironing are 18%. SAC 999799 covers other services not elsewhere classified, at 18%. Pest control is usually billed under 998531 or 999799 at 18%. When a business cannot find a specific SAC for a service, it may use 999799, but it should first check the specific groups in the SAC list, since a vague code makes the HSN summary less useful and can draw questions.
Salon gst rate and gym gst rate before and after
Before 22 September, salons, spas and gyms charged 18% with credit. Now they charge 5% without credit. For a salon with high rent and product costs, the saving to customers may be smaller than 13 points, because the salon loses credit it used to claim. Gym chains that invested heavily in equipment face the same issue.
Salon and gym owners can rely on this only as an overview of entry 35, in the form substituted by notification 15/2025-Central Tax (Rate). Bundled packages and the no credit condition need care, so confirm on the GST portal and get a GST practitioner's or chartered accountant's view.
Frequently asked questions
What is the GST on salon services?
Hair, beauty, spa and similar services are 5% without input tax credit since the reform.
What is the gym gst rate?
Gyms and fitness centres are 5% without input tax credit.
What is the 999799 sac code used for?
999799 covers other services not elsewhere classified, at 18%.
Can a salon claim ITC?
Not on inputs used for services taxed at 5%. Credit on goods bought for resale is allowed.
What is the GST on laundry services?
Laundry and dry cleaning are 18%.