Salons, spas, gyms and wellness centres are service businesses that also sell products — which means two GST treatments under one roof. It’s a straightforward sector once set up, and registration usually arrives sooner than owners expect as memberships and footfall grow.
Services at 18%
Salon, spa, grooming, fitness and wellness services are taxable at 18%. Memberships, packages and single sessions are all services at this rate. Once your turnover crosses the ₹20 lakh services threshold, registration is mandatory — a busy salon or gym reaches this quickly, so it’s worth planning for rather than being caught out.
Product sales are separate
When you retail products — cosmetics, supplements, haircare, equipment — that’s a supply of goods at the product’s own GST rate, not 18% by default. A clean bill separates the service line from the product line, each at its correct rate. Our billing software handles this split automatically.
Input credit and compliance
- Registration lets you claim input credit on rent, equipment, products and consumables
- Memberships and advance packages have timing considerations for when tax is due
- Product retail needs correct HSN; services need the right SAC
- Monthly GSTR-1 + GSTR-3B, or QRMP if eligible