Health and wellness
Spa services such as massages, steam, sauna and body treatments are physical well-being services in group 99972, taxed at 5% without input tax credit since 22 September 2025. A spa bill should show the therapy name, duration, therapist, room or suite, package or membership redemption, and any gratuity kept apart from the taxable value. Retail oils and skincare sold at the spa are goods with their own HSN rates and must be listed separately from therapies.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Swedish massage, 60 minutes | 999723 | 1 SESSION | 2,500.00 | 2,500.00 | 5% |
| Steam and sauna access | 999723 | 2 SESSION | 600.00 | 1,200.00 | 5% |
| Body scrub and wrap, 75 minutes | 999723 | 1 SESSION | 3,200.00 | 3,200.00 | 5% |
| Couple suite surcharge | 999723 | 1 NOS | 800.00 | 800.00 | 5% |
| Taxable value | ₹7,700.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹385.00 | ||||
| Invoice total | ₹8,085.00 | ||||
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
Read more: GST Rates and Slabs in India: The Current Structure Explained · Billing for Service Businesses: Models, GST and Best Practice · Advance Payment Under GST: Receipt Vouchers, Tax and Adjustment
The Council cut the rate on beauty and physical well-being services, covering spas, salons, health clubs and yoga centres, from 18% to 5% without input tax credit from 22 September 2025. The no-credit condition means GST on oils, linen, rent and renovation cannot be set off. A spa cannot opt to charge 18% instead. Price packages with this cost in mind.
A spa run by a hotel bills its spa services at the spa rate, separate from room tariff. When a spa treatment is included in a room package, the package may be a composite or mixed supply, and the rate depends on which element is principal or, for a mixed supply, the highest rate. Show spa charges as separate lines on the hotel folio to avoid disputes.
A panchakarma or Ayurvedic therapy given by a qualified practitioner to treat a disease can be exempt health care. A relaxing Ayurvedic massage marketed as a spa experience is a well-being service at 5%. If a spa employs a vaidya and offers treatment, keep clinical notes and bill those separately from spa menu items.
Massage oils, aromatherapy kits and skincare sold at the spa are goods. Hair oil and toilet soap are at 5% from September 2025, but many skincare products are not in that list. Use your supplier's HSN and rate, and claim input credit on retail stock, which is allowed for goods sold.
Spas sell gift cards redeemable for any therapy. Vouchers that can be used for different services are taxed when redeemed, not when sold. Vouchers for a specified service are taxed when issued. Mark the type on the voucher and in your billing system. Many spa bookings come through online platforms that collect payment and pass it on after commission. The spa's taxable value is the full price paid by the guest, not the amount received after commission. The platform's commission is a separate taxable service billed to the spa, on which the spa cannot take credit because its spa services are at 5% without credit.
Spas sell annual memberships and wallets with bonus value, such as pay ₹20,000 and get ₹24,000 of services. Tax is on the amount actually paid, not the bonus value. When a member uses wallet balance, the bill should show the service at menu price, the wallet redemption and the effective taxable value. Plans that are refundable on cancellation need a credit note when money is returned.
5% without input tax credit from 22 September 2025, under group 99972. It was 18% earlier.
A voluntary tip passed entirely to staff is not part of the spa's taxable value. A compulsory service charge added to the bill is part of the taxable value.
Not for services billed at the 5% rate. Credit remains available for goods sold, such as retail skincare.
Only when given as treatment by a qualified practitioner. A wellness massage on a spa menu is taxed at 5%.
Yes. A membership fee is consideration for the right to services, so GST at 5% applies when it is invoiced or received. Wallet top-ups for open use are treated like vouchers.
Sources: GST Council — PIB press release on 56th Council rate rationalisation (3 Sep 2025) · CBIC — Tax information portal (rate and exemption notifications)
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