GST Rate Applicable For Beauty Parlours, Gyms, and Healthcare Services

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Beauty parlours, gyms and healthcare services are on the rise as more and more people are shifting their attention towards healthy and sustainable lifestyle habits. As these services are more of a personalised nature, GST is borne by the end consumers. If you are planning to open a beauty parlour, gym or provide health care services, then it’s important for you to know its GST registration, its taxability and exemption notification implications. and implications. Even if you are the end customer, having knowledge about GST implications on such services will help you stay aware of their GST practices.

Applicability of GST on Beauty Parlours, Gyms, and Fitness Centres

Beauty parlours, gyms and fitness centres provide services to their customers. Therefore, they shall be liable to obtain GST registration online in case their aggregate turnover exceeds Rs. 20 lakhs during the financial year. However, for beauty parlours, gyms and fitness centres providing services from the following states, the threshold limit applicable for GST registration shall be Rs. 10 lakhs instead of Rs. 20 lakhs:

  • Manipur
  • Mizoram
  • Nagaland
  • Tripura

1.GST Rates and SAC Codes for Beauty Parlours

Following are the SAC codes applicable for beauty parlour services:

SAC Code

Services Applicable

999721

Barber and hairdressing services

999722

Cosmetic treatment (including cosmetic and plastic surgeries), pedicure and manicure

999729

Other beauty treatment services

The GST rate for beauty parlour services is 18%.

2.GST Rates and SAC Code for Gyms and Fitness Centres

For gyms and fitness centres, the SAC code applicable shall be 999723 which covers physical well-being services including fitness centres and health clubs. Further, the GST rates for gyms and fitness centres shall be 18%.
In case a fitness centre is involved in the supply of services and goods like selling of cosmetics, protein powders, etc., then GST registration would be mandatory if e-commerce is used for supply of goods or goods are sold to persons in other states.

3.GST Rate and SAC Codes for Health Care Services

In the case of health care services, the following SAC codes shall be applicable:y way of:

SAC Code

Services Applicable

9993

Services provided by the cord blood banks by way of preservation of stem cells or any other services in relation to such preservation
 

9993

Services by way of:
Health care services by a clinical establishment, an authorized medical practitioner or paramedics
Services provided by way of transportation of patients in the ambulance, other than those specified in (a) above.
 

999311

Inpatient services

999312

Medical and dental services

999313

Childbirth and related services

999314

Nursing and physiotherapeutic services 

999315

Ambulance services

999316

Medical laboratories and diagnostic imaging services

999317

Blood, sperm and organ bank services

999319

Other human health services including Ayurveda, Unani, acupuncture, naturopathy etc.

 

Health care services have been provided exemption from the GST. This has been a key measure to keep health care services affordable for the people. However, it shall be noted that the GST shall be applicable on pharmaceutical products and medicines. Following health care services have been provided exemption from the GST:

  • Veterinary clinic in relation to health care of animals and birds
  • Health care services provided by the authorised medical practitioners, clinical establishments and paramedics
  • Transportation of patients in an ambulance.
  • Services provided by way of preservation of stem cells by the cord blood banks including any other services in respect of such preservation.

Certain Key Points

  1. Health care services are exempt only for the recognised system of medicines in India. It typically includes:
    • Allopathy
    • Homeopathy
    • Ayurveda
    • Naturopathy
    • Yoga
    • Siddha
    • Unani
    • Any other system of medicines that the Central Government may recognise in this behalf
  2. Services in relation to hair transplant, plastic surgery or cosmetic shall be taxable. However, if they are undertaken to reconstruct or restore anatomy or body functions affected due to developmental abnormalities, congenital defects, trauma or injury, then they shall be exempt from GST.
  3. Food supplied to in-patients (hospitalised patients) is exempt from GST. However, food supplied to relatives of in-patients as well as out-patients shall remain taxable under GST.
  4. Retention money charged from patients  is exempt from GST if it is received in connection with the treatment.
     


Author : Dipen

Date     : 05-Jul-2022


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