Salon GST Billing Guide India 2026
SAC codes, CGST/SGST rates, invoice requirements, and how to generate GST-compliant invoices in under 30 seconds. The complete guide for Indian salon owners.
Every Indian salon above ₹20 lakh/year must issue GST invoices. Here's exactly how.
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What Is GST for Salons and Who Must Comply?
GST (Goods and Services Tax) replaced multiple earlier taxes — service tax, VAT, and others — when it launched in India on 1 July 2017. For salons, spas, and beauty businesses, GST applies to the services you provide to clients. Since 22 September 2025 the rate is 5% on all personal care and beauty services (down from 18%), split equally as 2.5% CGST and 2.5% SGST — but it now comes without input tax credit.
GST registration is mandatory if your annual turnover exceeds ₹20 lakh (₹10 lakh in Manipur, Mizoram, Nagaland, Tripura). Below this threshold, you can operate without GST registration — you cannot charge GST or issue GST invoices, and under the 5% without-ITC regime, registering no longer lets you offset GST on your service inputs.
What changed in 2025: The 56th GST Council cut GST on salon, spa, gym and wellness services from 18% to 5%, effective 22 September 2025 and mandatory per CBIC — there is no longer an option to charge 18% with ITC. Because the 5% rate excludes input tax credit, the real saving for clients is closer to 2.5% than the headline 13%.
Source: Press Information Bureau — FAQs on the decisions of the 56th GST Council.
Key point for growing salons: Once you cross ₹20 lakh turnover, every invoice from that point must be GST-compliant. There is no grace period. Non-compliance can result in penalties of ₹10,000–₹25,000 per offence.
For most salons, the practical question is not whether to comply, but how to do it efficiently. Manually creating GST invoices with correct SAC codes, CGST/SGST splits, and sequential numbering is time-consuming and error-prone. Billing software like SalonBoost generates compliant invoices automatically at every checkout — in under 30 seconds, dispatched to the client's WhatsApp instantly.
SAC Codes and GST Rates for Salon Services (2026)
SAC (Service Accounting Code) is the classification code for services under GST. Every line item on your invoice must include the correct SAC code. Here are the codes relevant to salon and beauty businesses:
| Service | SAC Code | GST Rate | CGST | SGST |
|---|---|---|---|---|
| Hair cutting, trimming, styling | 999721 | 5% | 2.5% | 2.5% |
| Hair colouring, highlights, bleaching | 999721 | 5% | 2.5% | 2.5% |
| Hair treatment (keratin, smoothening) | 999721 | 5% | 2.5% | 2.5% |
| Facial, skin treatments | 999722 | 5% | 2.5% | 2.5% |
| Manicure and pedicure | 999722 | 5% | 2.5% | 2.5% |
| Waxing, threading, shaving | 999722 | 5% | 2.5% | 2.5% |
| Massage services (spa) | 999723 | 5% | 2.5% | 2.5% |
| Bridal makeup and grooming | 999729 | 5% | 2.5% | 2.5% |
| Nail art and nail extensions | 999722 | 5% | 2.5% | 2.5% |
| Retail products sold in salon | HSN varies | 5–18% | varies | varies |
Note: All rates are for intra-state transactions. Inter-state services use IGST at the combined rate. Retail product rates vary by HSN code and product category — consult your CA for specific product classifications.
What Must a GST-Compliant Salon Invoice Include?
A GST invoice is only compliant if it contains specific mandatory fields. Missing any required field makes the invoice non-compliant, which can trigger issues during GST audits and rejected bills for B2B clients.
5 Common GST Mistakes Indian Salons Make
These mistakes are avoidable — but each carries a penalty risk.
Not issuing GST invoices above ₹20 lakh turnover
Consequence: Penalty of ₹10,000–₹25,000 per offence plus potential prosecution for tax evasion.
Fix: Register for GST as soon as annual turnover crosses ₹20 lakh. In some states (North-Eastern states), the threshold is ₹10 lakh.
Using a single flat GST rate instead of CGST + SGST split
Consequence: Your GST returns will be incorrect and the invoice is non-compliant. Your CA will need to manually correct every affected bill.
Fix: All intra-state salon services must split into equal CGST and SGST. For the current 5% service rate: CGST = 2.5%, SGST = 2.5%.
Not including SAC code on invoices
Consequence: Invoices are technically non-compliant. Issues during GST audits. Clients' accountants may reject.
Fix: SAC code 999721 for hair services, 999722 for beauty/skin services, 999723 for massage/spa. Add to every invoice line.
Mixing retail product GST with service GST on the same line
Consequence: Services are now taxed at 5% (without ITC), while retail products carry their own HSN rates (commonly 5–18%). Mixed lines create return-filing errors.
Fix: Bill services and retail products as separate line items with their respective SAC/HSN codes and tax rates.
Not filing GSTR-1 and GSTR-3B monthly
Consequence: Late filing penalty of ₹50/day (₹20 for nil returns). Interest on unpaid tax at 18% per annum.
Fix: Set calendar reminders. GSTR-1 due by 11th of next month; GSTR-3B due by 20th of next month.
How to Set Up GST Billing for Your Salon: Step-by-Step
From GST registration to generating your first compliant invoice — the complete process for Indian salon owners.
Check If You Need to Register
If your salon's annual turnover exceeds ₹20 lakh (₹10 lakh in some states), GST registration is mandatory. Note that since 22 September 2025 salon services are taxed at 5% without input tax credit, so registering no longer lets you offset GST on your costs — you register because you are legally required to once you cross the threshold, not for any input-tax-credit benefit.
Register on the GST Portal
Apply at gstin.gov.in. You'll need: PAN card, Aadhaar, business address proof, bank account details, and photographs. Registration typically takes 3–7 business days. A CA can assist for ₹1,000–₹2,000.
Configure Your Billing Software
In SalonBoost, go to Settings → GST Configuration. Add your GSTIN, business name, and state. Add SAC codes to each service (one-time setup). SalonBoost auto-applies CGST/SGST to every bill from that point.
Generate Compliant Invoices
Every checkout in SalonBoost generates a GST invoice with GSTIN, SAC codes, CGST/SGST split, and sequential invoice number — in under 30 seconds. The invoice is auto-dispatched to the client's WhatsApp instantly.
File Monthly Returns
Use SalonBoost's monthly GST summary report to share with your CA. The report shows total revenue, total CGST collected, total SGST collected, and service-wise breakdown — everything your CA needs for GSTR-1 and GSTR-3B.
How SalonBoost Automates GST Billing
Invoice in 30 seconds
Select services, confirm payment, and SalonBoost generates a fully compliant GST invoice with SAC codes, CGST/SGST breakdown, and sequential numbering. Auto-dispatched to client WhatsApp.
Automatic SAC code assignment
Set SAC codes for each service once during setup. After that, every checkout automatically applies the correct code and tax rate — no manual entry per transaction.
Monthly GST summary report
One click generates a month's GST summary: total revenue, CGST collected, SGST collected, service-by-category breakdown. Ready to send to your CA for GSTR-1 and GSTR-3B filing.
Non-GST mode included
If your salon is not yet GST-registered, switch to non-GST mode. Generate clean invoices without GST. Switch to GST mode when you cross the threshold — all historical data is preserved.
Split payment support
UPI + cash, card + UPI, partial advance — any split payment combination generates a single compliant invoice reflecting the full service value and correct GST amounts.
WhatsApp invoice dispatch
Every invoice is automatically sent to the client's WhatsApp with a Google Review request link. Clients receive a digital record; you build reviews on every transaction.
Start Generating GST Invoices Today
SalonBoost Standard at ₹799/month includes full GST billing. free trial, no credit card needed.
Salon GST Billing — Common Questions
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Founder & CEO, SalonBoost
Swetha has helped 500+ Indian salons and spas streamline operations with SalonBoost salon management software. She writes about salon growth strategies, WhatsApp automation, and the Indian beauty industry.