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CBIC announces salons, gyms, spas, and yoga classes will have 5 percent GST without ITC from September 22 as GST 2.0 launches, led by Nirmala Sitharaman and the GST Council.
News18
GST 2.0: The Central Board of Indirect Taxes and Customs (CBIC) has clarified that services, including salons, gyms, spas, and yoga classes, will be subject to a 5% GST without input tax credit (ITC) from September 22.
The physical well-being and beauty service providers will require to pass on the benefits of the Goods and Services Tax (GST) rate cut to customers by lowering the membership fees after September 22, the date when GST 2.0 comes into effect across India.
CBIC explained that there will be no more opportunity to charge 18 per cent GST with ITC, the body added.
A gym membership of Rs 1,000, for example, earlier attracted 18% GST, taking the final cost to Rs 1,180. From September 22, the same membership should cost Rs 1,050, provided the service provider passes on the benefit. Similarly, a Rs 500 salon service will fall from Rs 590 to Rs 525.
In a sweeping reform, the GST Council, led by Finance Minister Nirmala Sitharaman, has approved a sharp overhaul of the Goods and Services Tax (GST) structure. Effective September 22, the system will be simplified into just two main slabs of 5% and 18%, replacing the current 12% and 28% rates, with a special 40% slab for luxury and sin goods. Billed as a “historic Diwali gift” for citizens and businesses, the reforms aim to lower the cost of living, boost consumption, and spur economic activity.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
September 16, 2025, 14:13 IST
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