GST on Beauty Parlour & Salon Services — 18% Rate, Registration & ITC Guide

Updated: 3 June 2026 | CGST Act | SAC 9997

All beauty parlour and salon services — haircut, facial, waxing, threading, makeup, nail art, hair colouring — attract 18% GST (SAC code 9997). GST registration is mandatory if annual turnover exceeds ₹20 lakh. Registered parlours can claim ITC on products used (shampoo, wax, facial creams). Below the threshold, GST must not be charged. Cosmetic products sold separately in the salon are also taxed at 18% GST under the relevant HSN codes.

18% GST

On all beauty parlour, salon and grooming services — SAC code 9997.
Below ₹20L annual turnover: no GST registration needed, cannot charge GST. ITC available on products used for providing services.

GST on Salon Services — Rate Table

Service	GST Rate	SAC Code	Note
Haircut and hair styling	18%	9997	Men's and women's salons
Hair colouring / highlights / balayage	18%	9997	Including bleaching
Facial / skin treatment	18%	9997	All types — clean-up, D-tan, gold facial
Threading (eyebrows, upper lip)	18%	9997	All threading services
Waxing (arms, legs, full body)	18%	9997	Includes rica wax, chocolate wax
Manicure and pedicure	18%	9997	Basic and spa variants
Nail art and nail extensions	18%	9997	Gel, acrylic, UV extensions
Bridal / party makeup	18%	9997	Includes airbrush makeup
Hair spa and keratin treatment	18%	9997	Smoothening, rebonding
Head massage / body massage (non-medical)	18%	9997	Wellness, not medical treatment
Parlour below ₹20L annual turnover	NIL	—	No registration — cannot collect GST

GST on Cosmetics Sold in Salon

Product	HSN Code	GST Rate
Lipstick, lip gloss, lip liner	3304	18%
Foundation, compact, concealer	3304	18%
Nail polish / nail colour	3304	18%
Eye shadow, mascara, kajal	3304	18%
Shampoo and conditioner	3305	18%
Hair colour / hair dye	3305	18%
Perfume and deodorant	3307	18%
Skin cream / moisturiser (cosmetic)	3304	18%
Ayurvedic skin/hair products	3304/3305	12%
Beauty soap	3401	18%

ITC Eligibility for Beauty Parlour

Input / Purchase	ITC Eligible?	Reason
Shampoo, conditioner, hair colour used in service	Yes	Used for taxable supply of salon services
Wax (hot wax, cold wax, rica)	Yes	Directly used in taxable service
Facial creams, scrubs, face packs	Yes	Used in facial services (taxable supply)
Salon equipment (hair dryer, steamer)	Yes	Capital goods used for taxable supply
Disposables (cotton, foils, gloves)	Yes	Consumed in providing services
Cosmetics purchased for resale	Yes	Used for taxable supply (retail sale)
Renovation / interior fit-out of salon	No	Blocked under Sec 17(5)(d) — immovable property
Personal cosmetics used by owner/staff	No	Personal use — not for business supply

Frequently Asked Questions

What is the GST rate on beauty parlour and salon services?

All beauty parlour and salon services attract 18% GST (SAC code 9997 — other personal services). This applies to: haircut and hair styling, hair colouring and highlights, facial and skin treatment, threading and eyebrow shaping, waxing (full body, arms, legs, bikini), manicure and pedicure, nail art and nail extensions, makeup (bridal, party, regular), head massage, hair spa and hair treatments, keratin/smoothening treatments. The 18% rate applies uniformly to all beauty/grooming services regardless of the nature of the service. GST registration is mandatory if annual turnover exceeds ₹20 lakh (₹10 lakh for special category states).

Does a small beauty parlour need GST registration?

GST registration for beauty parlours depends on annual turnover: Below ₹20 lakh/year: No GST registration required — cannot charge GST from customers (must not collect GST). ₹20 lakh or above: Mandatory GST registration. Must charge 18% GST on services. Must file monthly/quarterly GSTR-1, GSTR-3B returns. Special category states (Manipur, Mizoram, Tripura, Nagaland etc.): threshold is ₹10 lakh. Voluntary registration below threshold: allowed but then all provisions apply including invoicing, returns, ITC. Important: even if turnover is below threshold, if you have inter-state supplies, registration is mandatory regardless of turnover.

Can a beauty parlour claim ITC on products used for services?

Yes — a GST-registered beauty parlour can claim Input Tax Credit on products used to provide services: Eligible for ITC: Shampoo, conditioner, hair colour, bleach (18% GST purchased) — ITC available. Wax (18% GST) — ITC available. Facial creams, scrubs, face packs (18% GST) — ITC available. Nail polish, nail accessories (18%) — ITC available. Equipment: hair dryer, straightener, steamer (18% GST) — ITC available. Consumables: cotton, foils, disposables — ITC available. NOT eligible for ITC: Personal consumables used by staff for personal use. Air conditioner in parlour waiting area used for personal comfort of owner/staff (mixed use — partial ITC). ITC on construction/renovation of parlour premises is blocked under Section 17(5)(d). Condition: ITC available only to the extent products/equipment are used for making taxable supplies (salon services).

How does GST work when a beauty parlour also sells cosmetics?

When a beauty parlour sells cosmetic products alongside services, each is taxed separately: Salon services (haircut, facial, waxing etc.): 18% GST — SAC 9997. Cosmetic products sold retail (lipstick, foundation, nail polish, perfume, skincare): 18% GST — HSN 3304/3305/3307. Hair care products (shampoo, conditioner, hair oil): 18% GST — HSN 3305. Ayurvedic cosmetics (herbal skin cream, herbal hair oil): 12% GST — HSN 3304/3305 (ayurvedic). Soap (beauty soap): 18% GST — HSN 3401. Each product sale must be invoiced separately from service. If combo offer (service + product as a package): the dominant nature test applies — if primarily a service with incidental product supply, entire value is SAC 9997 at 18%. If primarily a product sale, HSN rates apply. Clarity: issue separate line items on the invoice for service and product.

How should a beauty parlour raise a GST invoice?

GST invoice requirements for beauty parlour: Mandatory fields: Serial number (consecutive), Date of invoice, Customer name and address (optional for B2C below ₹50,000), GSTIN of parlour, Description of service (e.g., "Haircut + Blow Dry"), SAC code (9997), Taxable value (pre-GST amount), CGST @ 9% + SGST @ 9% (or IGST 18% for inter-state), Total amount. Example: Service fee ₹1,000 + CGST ₹90 + SGST ₹90 = Total ₹1,180. For B2C (walk-in customers): simplified invoice (no customer GSTIN needed). For B2B (corporate clients, wedding planners): full tax invoice with client GSTIN mandatory. Digital/UPI payments: invoice still required — GST is on the supply, not on the payment method. Composition scheme: beauty parlours can opt for composition (1% CGST + 1% SGST) if turnover below ₹1.5 crore — but cannot charge GST from customers and cannot claim ITC.

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