Great news for the beauty and wellness industry — the GST on Salon services has officially been reduced to 5%! This move is a much-awaited relief for both salon professionals and their clients, marking a significant step in making beauty and grooming services more affordable and accessible across India. This rate will be effective from September 22, 2025
Previously, salon services were taxed at 18%, which added a sizable amount to service costs and sometimes deterred consumers. Now, with the rate cut to 5%, salons can offer competitive pricing while maintaining healthy profit margins.
For salon owners and professionals, this is an excellent opportunity to attract more clients by reducing service charges without compromising quality. Lower GST on salon services also means easier compliance and better cash flow management. It encourages the formalization of small and medium salons by reducing tax burdens.
Clients opting for haircuts, facials, bridal makeup, spa treatments, and more will feel the positive impact in their bills, driving more frequent visits and higher satisfaction.
Salon’s should update their billing systems and communicate this benefit clearly to clients to maximize trust and transparency. It may also be a good time to introduce new services or loyalty programs that leverage this cost advantage.
The cut to 5% GST on Salon services is a long awaited Tax-Glow-Up offering increased competitiveness, client affordability, and a promising outlook for business growth. This reduction in GST on salon services aligns with the government’s aim to support the wellness sector and boost employment and entrepreneurship within the beauty industry.
Disclaimer: More details are awaited regarding Input tax credit , GST on professional/ luxury products (so far, only shampoos reduced GST rates) and other consumables.
