Nail services are 5% without credit
Group 99972 covers cosmetic treatment, manicure and pedicure services. The 56th Council meeting reduced the rate on beauty and physical well-being services from 18% to 5% from 22 September 2025, on condition that the provider does not take input tax credit. Nail studios rely on expensive imported gels, lamps and tools, so losing credit matters; the GST paid on these purchases becomes part of cost. Reprice services on that basis. The rate is mandatory, so a studio cannot choose 18% with credit. Display the GST-inclusive price on the menu board, since walk-in clients compare final prices.
Refills and repairs
A refill is a fresh service and is taxed at 5% when billed. A free repair inside the promised window has no consideration, so no tax arises, but it should still be recorded in your system as a zero-value job for stock and staff tracking. If a repair is charged, bill it at 5%. Avoid booking a free repair as a discount on another service, which confuses the value of each supply. Mark each refill on the bill with the original set's invoice number so a client's history is easy to follow.
Kits and products sold
Cuticle oil, nail polish, press-on kits and files sold to clients are goods. They carry their own HSN rates, and most nail products were not named in the September 2025 cut for toilet preparations. Take the rate from your supplier's invoice. Credit is available on stock bought for resale, so keep resale stock separate from salon-use stock on purchase records.
Training courses offered by studios
Many studios run nail technician courses. These are commercial training services, not beauty services to a client, and they do not get the 5% beauty rate automatically. Bill courses on a separate invoice with a training service SAC. Kits included with the course may make it a composite supply, where the principal supply, training, decides the rate. State the course duration, kit contents and certificate issued on the invoice.
Studios inside malls and franchise outlets
Mall kiosks and franchise studios pay rent and royalty, both taxable services. As the studio's output is 5% without credit, this GST is a cost. When negotiating rent, compare offers on a tax-inclusive basis. The studio's invoice must show its own legal name and GSTIN, not just the brand.
Online bookings and platform commission
Many clients book nail appointments through apps that collect a booking fee or take a commission. The studio's taxable value is the full price the client pays for the service, not the net amount after the app's cut. The platform's commission is a separate taxable service billed to the studio, and since nail services are taxed at 5% without credit, the studio cannot set it off. Reconcile app payouts against your own invoices every week to catch missing or wrong amounts.