GST rate for various service types depends on Services Accounting Code (SAS Code). SAS Code is a system of classification developed by the service tax department for collecting service tax. This same method of classification was adopted by the GST Council to collect GST levies.
The GST rates for services are categorized within these five levels namely 0%, 5%, 12%, 18%, and 28%. Most services fall under18% which is the default GST rate. We will discuss extensively In this article about GST rates on GYMS and Healthcare services.
GST Registration for Gyms and Beauty Parlour
Beauty parlors, gyms, and fitness centers with a yearly turnover of over Rs.20 lakhs and Rs.10 lakhs in the Special Category States would have to obtain GST registration. Since the supply made for gyms and beauty parlor would be categorized as intra-state supply, you will need to register for GST registration when the threshold has been exceeded.
Beauty parlors, gyms, and fitness centers with service tax registration would compulsorily need to complete GST migration.
In the event where a fitness center supplies goods and services such as powder, cosmetics, etc., and are sold outside the country then it is mandatory for such business to register for GST.
GST Rate for Beauty Parlours and SAC Code
SAC Code 999721 applies to hairdressing and barbing services. The SAC Code 999722 applies to cosmetic treatment, manicure and pedicure services. Other beauty related services are categorized under SAC Code 999729. The applicable GST rate for a beauty parlor and hairdressing services is fixed at 18%.
GST Rate for Fitness Centres and its applicable SAC Code
SAC Code 999723 applies to services targeted at well-being such as health club & fitness center. The applicable GST rate for gyms and fitness centers is 18%.
GST Rate for HealthCare Services and its applicable SAC Code
Below are the applicable SAC codes for healthcare services in India:
Inpatient – SAC Code 999311
Medical & dental – SAC Code 999312
Childbirth-related services – SAC Code 999313
Nursing & Physiotherapeutic services – SAC Code 999314
Ambulance services – SAC Code 999315
Diagnostic-imaging & Med Lab services – SAC Code 999316
Blood bank, sperm, ovule and organ services – SAC Code 999317
Other services such as acupuncture, homeopathy, Ayurveda, etc. – SAC Code 999319
The services exempted from GST include Healthcare services provided by a hospital, certified medical practitioner or paramedics. Also, transport services for patients such as ambulance are exempt from GST.
Note that clinics and hospitals involved in the supply of drugs and pharmaceuticals establishments may need to register for GST.
Company Vakil provides service relating to GST registration and all the legal queries.