Major GST Rate Cut: A Boost for Beauty and Wellness Services

The Indian government has slashed the GST rate on beauty and wellness services from 18% to just 5%, effective September 22. This significant reduction aims to make self-care more affordable for the lower middle class, impacting everything from salon visits to essential beauty products.

Self-Care Revolution: GST Rate Cut Makes Beauty and Wellness Affordable

New Delhi, September 22, 2023 — If you’ve been feeling the pinch from rising salon bills and gym memberships, rejoice! The Indian government has announced a significant reduction in the Goods and Services Tax (GST) on beauty and wellness services, slashing it from 18% to just 5%. This change, effective immediately, is set to make self-care more accessible for millions, particularly benefiting the lower middle class.

A Welcome Price Drop

The announcement came during the 56th GST Council meeting, where both the Centre and state representatives agreed on this much-anticipated move. Starting today, services ranging from salon visits and fitness classes to barber trims will see a substantial decrease in costs. This means that indulging in a luxurious facial or sweating it out in yoga classes will no longer break the bank.

But the good news doesn’t stop there. Everyday essentials like hair oil, toilet soaps, shampoos, toothbrushes, and toothpaste will also enjoy a reduced GST rate of 5%, down from the previous 12-18%. Your beauty shelf and bathroom cabinet are about to get a lot fuller without putting a strain on your wallet.

Why This Matters

According to the finance ministry, this GST rationalization aims to ease the financial burden on lower-income households. While luxury brands will also benefit from the tax cut, the primary goal is to simplify the tax structure and make basic self-care more affordable for everyone. “Administering a tax based on brand or value of cosmetics will create complexity,” the ministry noted, emphasizing that the benefits will be felt by all, from budget-conscious buyers to beauty aficionados.

What’s Getting Cheaper?

The price reduction applies to a variety of products and services, including:

• Beauty Services: Haircuts, facials, and spa treatments
• Fitness Classes: Yoga, Pilates, and gym memberships
• Everyday Essentials: Talcum powder, face powder, shaving cream, aftershave lotion, toothpaste, toothbrushes, and dental floss

However, some items like liquid soaps and mouthwash will remain at the old tax rate of 18%.

A Win for Beauty Enthusiasts

This isn’t just a tax update; it’s a self-care revolution. Imagine indulging in that monthly mani-pedi or adding an extra hair treatment without the guilt of overspending. For beauty lovers across India, this is a welcome step toward making self-grooming accessible and affordable.

So, whether you’re planning to book that long-overdue spa session or simply restock your beauty essentials, now is the perfect time. Your skin and your savings will undoubtedly thank you!