Salon & Spa GST Invoice Format in India (2026 Guide with SAC Codes)

A salon bill looks simple: a haircut, a facial, maybe a bottle of shampoo. But since the GST rate changes of September 2025, many salons and spas are still printing old formats with 18% GST, mixing products and services on one line, or skipping the SAC code altogether. This guide shows a clean, GST-ready invoice format for salons, spas, barbershops and beauty parlours in India.

This is educational content written for small business owners, not legal or tax advice. GST rates and notifications change — always confirm the current position with your Chartered Accountant (CA) before you change your billing.

Key Takeaways

• From 22 September 2025, CBIC has stated that beauty and physical well-being services (salons, spas, barbers, gyms, yoga centres) are taxed at 5% GST without input tax credit. The earlier 18%-with-ITC option is no longer available for these services.
• Services and retail products (shampoo, serum, hair colour sold to the client) should be shown as separate line items, each with its own HSN/SAC and GST rate.
• Intra-state bills show CGST + SGST; a salon almost always supplies within its own state, so IGST is rare.
• If you are below the registration threshold and not registered, do not charge GST at all — issue a simple bill without any tax line.
• Membership packages and advance payments need careful handling: GST is generally due when you receive the advance, not when the client uses the service.

Who Needs to Register for GST?

A salon is primarily a service business. For service providers, GST registration becomes compulsory once aggregate turnover crosses ₹20 lakh in a financial year (₹10 lakh in special category states). "Aggregate turnover" includes all your taxable supplies across branches with the same PAN — so two small outlets can together cross the limit even if each one alone does not.

Many salons also sell products. Once you are registered, those sales are taxed too. If you are not registered, you cannot collect GST from customers, and your bill must not show any GST amount.

The Correct GST Rate for Salon and Spa Services

Before September 2025, most salons charged 18% GST and claimed input tax credit (ITC) on rent, equipment and products used. After the rate rationalisation, CBIC clarified that beauty and physical well-being services are taxed at 5% without ITC, and that this is mandatory — the service provider cannot choose 18% with ITC instead. The same applies when such services are supplied inside a hotel.

"Without ITC" means you cannot claim credit of GST paid on inputs, input services and capital goods used to provide these services. For a salon owner, that changes the maths: the GST you pay on rent, chairs, dryers and professional products becomes a cost, while your output tax falls sharply.

Common SAC Codes for Salons and Spas

Use the code that best matches what you actually did for the client. If you are unsure whether a treatment counts as beauty, wellness or medical (for example, a dermatologist-led procedure), ask your CA — medical services follow different rules.

Products Sold Over the Counter

Retail products are goods and carry their own HSN code and rate. For example, shampoos and hair preparations fall under HSN 3305, and many such personal-care items moved to 5% in September 2025. Do not assume every product is 5% — perfumes, certain cosmetics and electrical appliances (like a hair dryer you sell) may sit in a different slab. Check the current rate for each HSN on the CBIC rate schedule or ask your CA before you set up your product list.

Mandatory Fields on a Salon Tax Invoice

Rule 46 of the CGST Rules lists what a tax invoice must contain. For a typical salon, that translates to:

1. Salon's legal name, trade name, address and GSTIN.
2. A unique, sequential invoice number (up to 16 characters, e.g. SAL/25-26/0412) and invoice date.
3. Customer name and, if the customer is a GST-registered business (for example, a corporate booking for staff grooming), their GSTIN and address.
4. Place of supply — usually your own state.
5. Description of each service or product, SAC/HSN, quantity, rate and taxable value.
6. Discounts shown before tax, so the taxable value is correct.
7. GST rate and amount split into CGST and SGST.
8. Total invoice value in figures and words.
9. Signature or digital signature of the supplier or authorised person.

For walk-in individual customers (B2C), you are not required to collect the customer's address for small bills, but a name and phone number are useful for appointment history and WhatsApp reminders.

Worked Example: A Saturday Bill

Priya visits a registered salon in Bengaluru for a haircut and a facial, and buys a bottle of shampoo. The salon offers 10% off the facial.

Grand total = ₹2,350.00 + ₹117.50 = ₹2,467.50 (rounded to ₹2,468 if you round off, with a ₹0.50 round-off line). *Confirm the product rate for your exact item.

Notice two things: the discount reduces the taxable value before GST is calculated, and the product sits on its own line even though it happens to share the same rate today. If the product rate changes later, your format will not break.

Packages, Memberships and Gift Vouchers

Prepaid packages

Suppose a client pays ₹10,000 for a "6 facials" package. For services, GST is generally payable when you receive the advance. Issue a receipt voucher (or a tax invoice) at the time of payment, and then record each session against the package without charging GST again. Keep a simple balance on each visit: "Package FAC-6: 2 of 6 used".

Gift vouchers

The GST treatment of vouchers depends on whether the voucher can be used for one specific service or for anything in your menu. This area has seen clarifications and changes, so ask your CA how to treat the vouchers you sell and when GST becomes due on them.

Tips to staff

A tip the client voluntarily gives directly to a stylist is usually not part of your invoice. If you add a "service charge" to the bill and keep it as salon revenue, it becomes part of the value of your supply and attracts GST. Do not add a compulsory service charge without explaining it clearly to the customer.

Common Mistakes Salons Make

• Still charging 18% on services: Old billing software or printed rate cards often still say 18%. Update them.
• Claiming ITC on salon purchases: With the 5% without-ITC rate, credit on inputs used for these services is not available. Speak to your CA about how this affects any balance in your electronic credit ledger.
• One combined line for everything: "Services + products ₹2,350" makes it hard to apply the right rate and HSN.
• Charging GST while unregistered: Collecting tax you are not registered to collect is a serious issue. Unregistered salons should issue a plain bill.
• Breaking the invoice number series: Use one series per financial year per branch, without gaps. Cancelled bills should be marked cancelled, not deleted.

Sending Salon Bills on WhatsApp

Most salon clients book on WhatsApp already. Sending the bill to the same chat gives them a record, and gives you a natural place to add a "Book your next appointment" line. Keep the message short: amount, UPI ID or QR, and the PDF. Avoid sending photos of handwritten bills — they are hard to read and harder to search later.

Frequently Asked Questions

Can a salon still choose 18% GST with ITC?

According to CBIC's clarification for the rates effective 22 September 2025, no — 5% without ITC is mandatory for beauty and physical well-being services. Confirm with your CA if your service mix includes anything outside this category.

Is GST charged on products used during a service, like hair colour?

Products consumed while performing the service are part of the service, so they are billed within the service line, not separately. Only products the client takes home are billed as goods.

Do I need the customer's GSTIN?

Only if the customer is a registered business that wants to record the purchase. For individual walk-in clients, it is not required.

What if I run a salon under the composition scheme?

Composition taxpayers issue a bill of supply, do not show GST on the bill and pay tax at the composition rate on turnover. Read our composition scheme billing guide and check your eligibility with your CA.

Should my bill mention "5% without ITC"?

There is no rule requiring that wording on the customer's bill. Showing the rate and the CGST/SGST split clearly is what matters.

Disclaimer: This article is for general education only and reflects our understanding of GST rules as of the date of publishing. It is not tax or legal advice. Please confirm rates, SAC codes and ITC treatment with a qualified Chartered Accountant.