GST on salon services & health clubs: Did your beauty treatment get cheaper?

Your salon bills are set to get lighter. The GST Council has cut the tax on beauty and physical well-being services, which include salons, barbers, fitness centres, yoga and health clubs, from 18% to 5%, without input tax credit (ITC).

That means whether you’re booking a haircut, facial, massage or fitness session, the service charge will now be significantly lower.

The move is part of the broader GST rationalisation exercise aimed at making essential and commonly used services more affordable.

Also Read: Big savings on small cars, prices to drop by 12-12.5%

Alongside salons, the government has also reduced GST on several personal care products like soaps, shampoos and more.

Toilet soap bars now attract only 5% GST, a step aimed at easing the monthly expenses of lower and middle-income households.

Face powders and shampoos too have been brought down to 5%, despite concerns that luxury brands may also benefit. The FAQs released by the government said the cut was designed to simplify the tax structure rather than target specific brands.

Dental hygiene products like toothpaste, toothbrushes and dental floss are down to 5%, but mouthwash remains out of the list.

For beauty and grooming businesses, the tax relief is expected to boost demand as consumers see salon visits and wellness services becoming more pocket-friendly.

The government panel approved simplifying the GST from the current four slabs - 5, 12, 18 and 28 per cent, to a two-rate structure - 5 and 18 per cent. A special 40 per cent slab is also proposed for a select few items such as high-end cars, tobacco and cigarettes.

The new rates for all products, except pan masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and bidi, will be effective September 22.