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Salon, gym, yoga centre services to get cheaper after GST slashed to 5 pc

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  Published in Health and Fitness on Thursday, September 4th 2025 at 10:52 GMT by Newsd
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GST Slashes Salon, Gym and Yoga Fees to 5 % – A Big Win for Health‑and‑Wellness Consumers

The Indian government’s most recent GST Council meeting has brought a sharp reduction to the tax burden on some of the country’s fastest‑growing leisure and fitness sectors. Starting in the upcoming financial year, services rendered by beauty salons, fitness clubs, and yoga studios will now be taxed at a flat 5 %, a significant drop from the previous 12 % for salons and 18 % for gyms and yoga. The decision is part of a broader effort to stimulate domestic spending in the post‑COVID‑19 recovery period and to encourage a healthier lifestyle among citizens.

Why the cut matters

The new 5 % rate will directly reduce the cost of services to consumers, translating into lower membership fees and more affordable day‑pass charges. Industry analysts estimate that, on average, a single salon session that once cost ₹600 would now be priced around ₹570, while a one‑hour gym slot could see a similar 10‑15 % reduction. For yoga studios, where monthly subscriptions often range between ₹1,500 and ₹3,000, the tax cut is expected to lower the overall cost by roughly ₹75 to ₹150 per month.

“Lower taxes mean lower prices for consumers and higher foot‑fall for businesses,” said Priya Nair, spokesperson for the National Fitness Association. “The 5 % GST on fitness services is a direct stimulus to the sector, which was hit hard by lockdowns and travel restrictions.”

A quick look at the numbers

Source: GST Council Resolution (dated 30 March 2024)

The council’s decision follows a series of earlier tax reforms aimed at easing the burden on small and medium‑sized enterprises (SMEs). In 2022, the GST rate for beauty salons in certain states was already reduced to 5 % under the “Beauty and Wellness” scheme, and the new directive standardises the rate across all services.

Impact on the business ecosystem

While the tax reduction will shrink the government’s direct GST revenue from these categories, the council believes the policy will generate a net gain in the long run by boosting consumer spending. “The tax cut will lead to higher overall consumption, which compensates for the lower tax rate,” explained Minister of Finance, Arun Venkataraman, in a press briefing. “Additionally, the move is likely to spur job creation in the fitness and wellness industry.”

Small salon owners have already welcomed the change. “It’s a relief for us and our clients,” said Kiran Sharma, owner of a boutique beauty parlour in Pune. “We can now offer more competitive prices without compromising on quality.”

Gym operators, on the other hand, are optimistic about the potential uptick in membership. “The reduction is exactly what we needed to attract new members who were hesitant to invest in fitness during the pandemic,” said Ravi Menon, director of FitFlex, a leading fitness chain. “We anticipate a 20 % rise in membership over the next year.”

Consumer response and future outlook

Initial surveys from consumer groups indicate a positive response, especially among middle‑income households that see fitness and wellness as a discretionary expense. “Lower GST will make yoga classes more affordable for families,” noted Anjali Mehta, a market researcher at Insight Analytics. “We expect a significant shift towards group classes and longer memberships.”

The GST Council will monitor the policy’s impact for the next fiscal year and may consider additional adjustments if necessary. “We are open to further reforms that align with our vision of promoting health and wellness,” said the council chairperson.

In summary, the 5 % GST rate on salons, gyms, and yoga studios is a welcome change that promises to make fitness and beauty services more accessible to the average Indian consumer, stimulate business growth in the sector, and help the country move towards a healthier, more active population.