GST Rate and ITC

Spa/salon services generally attract 18% GST.

GST rates on beauty products vary. Common rates are : Shampoo: 18% GST. Massage cream: Likely18% GST if classified under cosmetics. 

You can claim ITC on GST paid on inputs (beauty products, equipment, etc.) used for providing taxable services or selling taxable goods. 

ITC is available if you have valid invoices and the goods/services are used in the course or furtherance of business. 

Ensure you maintain proper records and comply with GST rules for claiming ITC.

latest clarification 5% GST without ITC is applicable or note ?

For a spa/salon, beauty, hairdressing and similar personal-care services are generally taxable at 18% GST. Products sold over the counter are taxed at the rate applicable to each product’s HSN classification; many shampoos and massage preparations are also taxed at 18%, but the rate should be verified product-wise rather than assumed. If a package combines services and products for one price, determine whether it is a composite or mixed supply and apply the applicable valuation and rate rules.

ITC is generally available on GST paid for business inputs and services used to make taxable salon supplies, subject to the usual conditions: a valid tax invoice, receipt of the supply, supplier reporting/payment compliance, and filing the required return. ITC is not available for personal use, exempt supplies, or blocked credits under section 17(5). Maintain separate product-wise HSN/rate and purchase/sales records, and allocate common ITC where taxable and exempt supplies coexist.

Accurate product classification and billing are central to the salon’s GST and ITC workflow. Manual invoice review and rate checks can be difficult, while automation reduces repetitive work and keeps professional judgment in control. At Jir AI, our 2,000+ AI agents and 650+ integrations streamline GST, ITR, TDS, TCS and other compliance workflows, helping reduce manual workload by up to 70%. For a simpler compliance workflow, connect with us on WhatsApp: https://wa.me/message/3HVOZ7HIY4ESC1