The Goods and Services Tax (GST) rate for all types of services is based on the SAC Code (Services Accounting Code). SAC is a services classification system which was developed by the service tax department for the demand of service tax. The GST Council thought of adopting the same classification system for the demand of GST. GST rate services has five slabs namely – 0%, 5%, 12%, 18% and 28%. 18% is the default GST slab so the majority of the services fall under it. Given below are the GST rates for beauty parlours, gyms and health care services in details.
GST Registration for Beauty Parlour and Gyms in India
Beauty parlours, fitness centres and gyms which have more than Rs 20 lakhs of annual turnover (In the Special Category States, Rs.10 lakhs annual turnover) must register for GST. Since, the supply provided by beauty parlour and gyms would fall under intra-state supply, GST registration would be required only on crossing the threshold. And also the beauty parlours, fitness centres and gyms which have service tax registration have to compulsorily complete the GST registration.
GST registration will be compulsory, if fitness centre is engaged in the supply of goods and services like selling of cosmetics, protein powders, etc. and even if e-commerce is used for the supply of goods or goods are sold to persons in other states.
SAC Code and Applicable GST Rate on Beauty Parlours
- SAC Code 999721 is applicable for hairdressing and barbers services
- SAC Code 999722 is applicable for cosmetic treatment (including plastic/cosmetic surgery), manicuring and pedicuring services
- SAC Code 999729 is applicable to all other beauty treatment services
GST rate @18% is applicable for hairdressing services and beauty parlour services.
SAC Code and GST Rate on Fitness Centres (& Gyms)
- SAC Code 999723 is applicable to physical well-being services including health club & fitness centre
GST rate @18% is applicable for fitness centres and gyms.
GST rate @28% is applicable for Gym equipment.
SAC Code and GST Rate for Health Care Services
- SAC Code 999311 – Inpatient services
- SAC Code 999312 – Medical and dental services
- SAC Code 999313 – Childbirth and related services
- SAC Code 999314 – Nursing and Physiotherapeutic services
- SAC Code 999315 – Ambulance services
- SAC Code 999316 – Medical Laboratory and Diagnostic-imaging services
- SAC Code 999317 – Blood, sperm and organ bank services
- SAC Code 999319 – Other human health services including homoeopathy, Ayurveda, Unani, naturopathy, acupuncture etc.
Healthcare services provided by a clinical establishment, an authorised medical practitioner or para-medics is free from GST and also the service given by way of transportation of a patient in an ambulance is free from GST.
For medicines and pharmacy products, GST is applicable. Hence, GST registration is compulsory for clinical establishments and hospitals who are involved in the supply of medicines and pharmacy.