04 Nov 2019Posted By: Mudit Handa


How much GST rates apply on Hair & Beauty Salon?

Running a Hair salon can be really interesting as well as a lucrative business. If carried out in a well-planned manner, a hair salon business can fetch instant success. The reason is the booming fashion industry, due to which the Hair & Beauty care business is one of the fastest-growing businesses in the world today. You can easily expand your hair salon business in today's competitive age if you fulfill all the necessary legal compliances involved in the same. There are clearly defined provisions of GST for the hair salons having GST registration.

Let us understand in-depth the rules of GST applicable to the hair salon & beauty care business.

 

1. An Overview of the Salon industry in India

The salon industry in India is anticipated to soar above US$ 5 billion by the end of FY 2019-20. This can be attributed to the rising income levels of upper strata, coupled with rapid urbanization and the up and coming technological headway.

Though there are certain financial perils and the prolonged working hours in this business, yet a Hair Salon business can a thrilling and lucrative thing.

If you too desire to run a chic salon, and you’re vague how to go about it, then you must understand in depth the technicalities of such business. Here we shall understand the provisions of GST applicable to a hair salon having GST registration in India.


2. GST provisions for a hair salon in India

As per the provisions of the GST Act, all those hair salons need to get compulsory GST registration in India whose turnover is beyond INR 40 lacs. There are different GST rates for Services provided by a Hairdressing salon having GST registration.

Separate rates of GST are applicable to various services provided by a hair salon having GST registration in India, which includes facial, and beauty treatment, hairdressing, manicure, pedicure, etc. There are several GST exempted services provided at a hair salon.                                                                                                 


3. Various services rendered by a hair & beauty salon

Different grooming and Beauty care Treatment services at a hair salon having GST registration are listed below:

  1. Hairdressing,
  2. hair coloring,
  3. hair styling,
  4. facial & beauty treatment,
  5. cosmetic treatment (which also includes surgical treatment),
  6. manicure & pedicure
  7. beauty consultancy services
  8. facial, make-up and other such comparative services;

4. GST rates applicable to various goods & services

As we all know that the Goods and Service Tax (GST) tax rates in India are categorized into 6 fundamental classes of goods & services. Based on that, the 4 of the fundamental GST rate slabs are given below-

  • Essential goods and services 5%,
  • Standard goods and services 12% and
  • Some Standard Goods and Services also fall under the Slab of 18% and
  • Luxury goods and services attracting GST@ 28%.

Besides, certain Luxury goods & services also draw in extra cess over and above 28% GST.


5. How much GST applicable on hairdressing services?

The hairdressing services provided by a hairdresser or a barber, come under the SAC Code 999721.

The applicable rate of GST on hair cutting or dressing services provided by a hairdresser or a barber is 18%. The rates of GST on the hair salon services are given below in the table:-

SAC code

Type of Service

GST rate

 999721 

 Hairdressing and barbers   services

18

 999722 

 Cosmetic treatment (incl.   cosmetic  & plastic   surgery),   manicure and   pedicure services

18

 999729

 Other types of beauty     treatment   services

18


6. Which salon services is GST exempt?

Certain types of beauty treatment services are entirely exempt from GST liability.

The above-explained data clearly tells how the GST rates are applied to the services provided by a hair salon having GST registration.

If you need any sort of help regarding the procedure of GST registration, please feel free to contact our business advisors at 8881-069-069.

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