Beauty services at 5% without input tax credit
The GST Council cut the rate on beauty and physical well-being services from 18% to 5% from 22 September 2025, with the condition that no input tax credit is taken. This covers the full range of parlour services: threading, waxing, bleach, facials, manicure, pedicure, makeup and mehendi. The parlour cannot claim credit on wax, creams, furniture or rent used for these services. Because the rate is mandatory, the parlour cannot opt to stay at 18% to keep credits. Update price lists and billing software, and remember that a price shown as GST-inclusive should now carry less tax inside it.
Bridal advances and the time of supply
For services, GST is due on the earlier of invoice date and receipt of payment. A bridal booking advance received in March for a December wedding therefore triggers 5% tax on the advance in March. Issue a receipt voucher showing the tax on the advance, then a final tax invoice after the wedding that adjusts the advance. If the booking is cancelled and the advance refunded, issue a refund voucher so the tax paid on it can be adjusted.
Makeup artist freelancers working in the parlour
Many parlours bring in freelance makeup artists for bridal seasons. If the freelancer bills the parlour, and the parlour bills the bride, the parlour charges 5% on the full value but cannot take credit on the freelancer's GST, if any. If the freelancer bills the bride directly, the parlour should not show that service on its own bill. Decide who the supplier is for each booking and write it on the booking form.
Products used versus products sold
Wax, bleach, creams and makeup used on clients are inputs absorbed in the 5% service price. Products sold to clients to take home, such as face wash or hair oil, are goods with their own rates. Hair oil, shampoo, soap and talcum powder moved to 5% in September 2025, while many other cosmetics did not. Bill retail sales on separate lines with the supplier's HSN and rate.
Small parlours and the registration threshold
A home-based or neighbourhood parlour with turnover below ₹20 lakh (₹10 lakh in special category states) need not register and charges no GST. Bridal seasons can push turnover over the limit quickly, so check the running total monthly. Once registered, every bill must carry the parlour's GSTIN and the tax breakup. The services composition scheme at 6% is available up to ₹50 lakh, but it is higher than the regular 5% rate, so it rarely makes sense.