Effective September 22, 2025, the GST rate for salon, beauty parlour, and spa services in India has been reduced to a mandatory 5% without Input Tax Credit (ITC). This replaces the previous 18% rate, aiming to make services more affordable by lowering the tax burden on customers.
Effective September 2025, GST on salon services, spas, wellness centres, gyms, and health clubs has been cut from 18% to 5%. At the same time, personal care products like shampoos, soaps, and hair oils have also been shifted to the 5% tax slab.
The HSN code for cosmetics products generally falls under category 3304. This includes beauty or make-up preparations, such as skin care products, foundation, and lipsticks. The GST rate for cosmetics under this HSN code is typically 18%.
GST Rate for Beauty Parlours
All such services are covered under HSN Code 9997 and attract GST at 18%. Beauty parlours whose annual turnover is over the prescribed threshold for GST registration but less than Rs. 50 lakhs can opt for the composition scheme and pay only GST at 6%.
The eligibility thresholds for the Composition Scheme as of 2025 are: Manufacturers and Traders of Goods: Annual turnover up to ₹1.5 crore. Special Category States: ₹75 lakh turnover limit for states like Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand.
GST is typically added to:
Services like haircuts, tradie work, and gym memberships.
The GST on beauty, wellness, spa and salon services has been reduced from 18% to 5%.
Are personal care items taxable? Usually. Personal care items like regular non-medicated shampoo and conditioner, breath spray, cosmetics and teeth whitening kits are generally taxable if a state has a sales tax.
Women's suits and ensembles are classified under HSN Code 6104 (knitted) or 6204 (woven). The GST rate is either 5% or 12%, depending on the price of the garment. Garments priced at or below ₹1,000 per unit attract 5% GST, while those priced above ₹1,000 per unit are taxed at 12% GST.
GST Rate and Slab Changes in September 2025
GST rate cuts on 200 items happened from 22nd September 2025. 90% of items in the current 28% slab are moved to the 18% slab. Almost 99% of the items in the 12% slab are moved to the 5% slab.
For any standard-rated supplies of goods or services that you make on or after 1 Jan 2024, you must charge GST at 9%. For instance, if you issue an invoice and receive payments for your supply on or after 1 Jan 2024, you must account for GST at 9%.
Tax changes for 2025, largely driven by the "One Big Beautiful Bill" (OBBBA) Act, introduce significant deductions for seniors, tips, overtime, and auto loan interest, expand the Child Tax Credit, and raise the SALT deduction cap to $40,000, while making several 2017 Tax Cuts and Jobs Act provisions permanent, including the seven tax brackets. Key changes include a $2,200 Child Tax Credit, a $6,000 senior deduction, deductions for qualified tips and overtime, and a permanent standard deduction increase.
What was the decision in 56th GST council meeting? The long-discussed proposal for a two-tier GST structure has now been approved (and implemented starting from 22nd September 2025): 5% GST: Applicable to most essential and everyday goods and services. 18% GST: For higher-value products and services.
Goods and services tax credit
According to the federal government, the maximum annual amount an individual may receive from July 2025 to June 2026 is $533, while a married or common-law couple could see up to $698 combined.
10 hair stylist tax deductions
What is the GST on cosmetics in India? Cosmetic products attract 18% GST, with certain high-end or imported luxury items taxed at 28%.
What will be the new 2025 GST rate structure? GST 2.0 reform abolished the old tax structure (5%, 12%, 18% and 28%). The council introduced the new 2-slab structure of 5%, 18% and 40% for demerit.
Which services fall under the 5% GST slab? Services such as food delivery, passenger transport, renting of motor vehicles (with fuel cost included), certain job work services, and low-ticket cinema admissions fall under the 5% GST slab.
Do I have to register for the GST/HST? Generally, if you provide taxable property and services in Canada and your total taxable revenues exceed $30,000 in any single calendar quarter or in four consecutive calendar quarters, you will have to register for the GST/HST.
A recent tax law ("One Big Beautiful Bill") introduced a new $6,000 bonus deduction for Americans aged 65 and older, available for tax years 2025-2028, reducing taxable income, not the tax itself, with income phase-outs starting at $75,000 MAGI for singles and $150,000 for joint filers. This deduction adds to existing standard deductions, provides up to $12,000 for couples, and requires a Social Security number and filing status other than Married Filing Separately.
GST system treats professional services as "taxable services." This means professionals must register for GST and charge GST on their services once they exceed a certain turnover limit. In most states, this limit is ₹20 lakh. In special category states the limit is lower at ₹10 lakh.