Gone are the days when the Indian salon and beauty industry was a small niche. Today, it is a rapidly growing sector with beauty businesses evolving all over the country. Unfortunately, most salon owners only look at the glamorous aspect of running a salon and in the bargain forget about the legalities and compliance requirements.
Today, GST compliance is more important than ever for salon owners. GST on salon services in India 2026 is now 5% from the previous 18%. The new GST rate beauty parlour India came into effect on September 22, 2025. It’s going to be a year soon since this new rate has been in effect.
When the news came out, no doubt it marked a historic moment for India’s beauty industry. It was also one of the biggest tax reliefs the sector has ever seen. For an industry that is projected to reach US$ 23 billion by 2033, this change……..readmore-https://salon360app.com/marketing/gst-for-salons-a-complete-guide/
GST or Goods & Services Tax has been mandatory in India since 2017. As the name implies, it is an indirect tax levied on the supply of goods and services in India.
Beauty parlour services including haircuts, hair colouring, makeup, facials, skincare treatments, manicures, spa services, and more are treated as taxable services under GST.
GST registration salon is mandatory and that’s when a beauty business becomes liable to return filing requirements prescribed under law.
A lower GST definitely makes salon services cheaper for clients. When people find your services cheap that means more people can afford to book. For instance, a haircut that cost Rs. 1,180 under the 18% GST slab, now costs Rs. 1,050 under the 5% GST slab.
The opportunity is massive for salon owners. With India’s beauty market growing at a CAGR of 7.5% to 8%, this GST slash couldn’t have come at a better time.
The revised 5% GST applies to all beauty and well-being services. Here’s what’s covered:
- Haircuts and hairdressing
- Bridal makeup
- Facials and skincare treatments
- Grooming packages
- Spa services
- Barber services
A lower GST definitely makes salon services cheaper for clients. When people find your services cheap that means more people can afford to book. For instance, a haircut that cost Rs. 1,180 under the 18% GST slab, now costs Rs. 1,050 under the 5% GST slab.
The opportunity is massive for salon owners. With India’s beauty market growing at a CAGR of 7.5% to 8%, this GST slash couldn’t have come at a better time.
