GST cut from 18% to 5% for salons, gyms, yoga, beauty & wellness services (effective Sept 22, 2025) makes grooming and fitness more affordable.”

GST Slashed to 5% on Salons, Gyms & Yoga Centres – Affordable Wellness at Last

Game-Changing GST Reforms to Lighten Your Wellness Bill

India’s GST Council—under Finance Minister Nirmala Sitharaman—has ushered in sweeping tax reforms, simplifying GST slabs to just two main rates: 5% and 18%. This new structure, set to take effect from September 22, 2025, replaces the earlier four-tier system and aims to boost consumption while supporting middle-class households.

As part of this rationalisation, beauty and wellness services—spanning salons, barbers, spas, fitness centres, gyms, and yoga studios—will now be taxed at just 5% with no input tax credit (ITC), down from the earlier 18% with ITC benefit. This shift is poised to make everyday grooming and fitness activities significantly more affordable across India.

More Than Just Wellness – What Else Got Cheaper?

Under the GST overhaul, a host of personal-care and daily-use products have also seen their taxes reduced to 5%, including:

Hair oil, shampoos, soaps, toothpaste, toothbrushes, talcum powder, face powder, shaving cream, aftershave, and more.
Educational and health services, including diagnostic labs, private tuition (up to class 12), and insurance premiums (health and life), are now either 5% or GST-free.
Many consumer goods like dairy products, packaged foods, chocolates, ACs, TVs, and vehicles have also seen reductions under the 5% or 18% slabs.

Why the Cut—And What’s the Big Picture?

The GST Council’s rationale was clear: reduce household expenditure, simplify the tax framework, and stimulate demand—particularly before the festive season. Analysts anticipate that these cuts could lower inflation by up to 1.1 percentage point, providing much-needed relief to consumers Reuters.

However, while lower rates offer immediate consumer savings, the removal of ITC for wellness services may raise operational costs for service providers—possibly offsetting some of the intended consumer benefits.

When Does It Kick In? Important Dates to Note

The new GST regime goes live on September 22, 2025, coinciding with Navratri festivities. Note that “sin goods” like tobacco and non-alcoholic sweetened drinks face a steep 40% levy, as part of efforts to discourage consumption and recoup GST revenues.

What This Means for You – Key Takeaways

Grooming gets cheaper: Haircuts, facials, spa visits, membership at gyms/yoga studios—all will be noticeably more budget-friendly.
Wellness services more affordable: Yoga, fitness classes, and related services are also benefiting from the tax cut.
Benefits may vary: With no input tax credit, businesses might adjust pricing. Still, overall cost is expected to decrease.
Broader consumer relief: From cooking essentials to electronics, the GST rationalisation touches multiple sectors aimed at easing the financial load.

Tags: MumbaiNews trendingnews