Update: The Indian government has reduced GST on beauty & wellness services to 5%. A much needed Tax-Glow-Up for the salon industry. This rate will be effective from September 22, 2025. This includes a wide range of offerings such as haircuts, facials, makeup, skincare treatments, and luxury spa services.
Salon professionals understand that managing costs while providing top-quality services is a fine balance. One crucial factor influencing salon pricing and profit margins is the GST on Salon services, which currently stands at 18% for most treatments including haircuts, facials, spa, and makeup.
One key reform under discussion in 2024 was the possibility of moving some luxury salon services and cosmetic treatments from the current 18% tax slab to 28%.
However, a report from TOI suggests a possible proposal of streamlining GST slabs into mainly two rates—5% and 18%. In this setup, many items currently taxed at 28% could drop to 18%, while 12% items might shift to 5%. Industry bodies like the Hair and Beauty Federation (HBF) have requested that basic salon services be exempted from GST or taxed at a lower 5% rate.
They argue that beauty and wellness services are essential health-related services, not luxuries, and reducing GST would help revive the struggling industry and make services more affordable.
It’s important for salon owners to stay informed as the GST Council plans to discuss these proposals in meetings expected after the Monsoon Parliamentary session in August 2025. Final decisions may shape the future of GST on salon services in India, impacting pricing, compliance, and industry growth.
Note: For the latest updates, always refer to official government notifications.
