If you run a hair salon, beauty parlour, spa, or barbershop and are registered for GST, you need to know the correct SAC code and GST rate. Salon services are among the most searched GST queries — because salon owners often do not know whether to charge 18% or a lower rate. This guide gives you the definitive answer with invoice examples.
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Quick Answer
The SAC code for salons, beauty parlours, spas, and barbershops is 999721 (hairdressing and beauty treatment services). GST rate is 18%. This applies to hair cutting, styling, facials, waxing, threading, manicure, pedicure, spa treatments, and makeup services.
Salon & Beauty Parlour SAC Code: 999721
All salon and beauty services fall under SAC code 999721 — "Hairdressing and beauty treatment services." This covers: hair cutting, colouring, highlights, blow dry, straightening (salons), facials, waxing, threading, skin care treatments (beauty parlours), manicure, pedicure, nail art, nail extensions (nail studios), massage, body scrubs, steam, aromatherapy (spas), beard trimming, shaving, head massage (barbershops), and bridal makeup, party makeup, and professional makeup services.
Service
SAC Code
GST Rate
Hair cutting and styling
999721
18%
Hair colouring and highlights
999721
18%
Facial and skin treatments
999721
18%
Waxing and threading
999721
18%
Manicure and pedicure
999721
18%
Spa treatments (massage, steam, scrub)
999721
18%
Bridal and party makeup
999721
18%
Sale of beauty products at salon
HSN of product
12–18%
When Must a Salon Register for GST?
GST registration is mandatory for salons when annual turnover from services exceeds ₹20 lakh (₹10 lakh in special category states like Himachal Pradesh, Uttarakhand, Manipur, etc.). A salon with monthly revenue above ₹1.67 lakh should evaluate registration. Note: if you sell beauty products (shampoos, serums) alongside services, the product sales also count towards the ₹20 lakh threshold. Registered salons must charge 18% GST, issue proper GST invoices, and file monthly/quarterly GST returns.
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A GST-registered hair salon in Bengaluru issues an invoice to a regular client: Hair colouring: ₹3,500 | Deep conditioning treatment: ₹800 | Hair cut & blow dry: ₹600 | Subtotal (Taxable Value): ₹4,900 | CGST @ 9%: ₹441 | SGST @ 9%: ₹441 | Total: ₹5,782. SAC code: 999721. Since both salon and client are in Bengaluru (Karnataka), CGST + SGST applies. For an inter-state client visiting while travelling, IGST 18% = ₹882.
Can Salons Claim ITC on GST Paid?
Yes — GST-registered salons can claim ITC on business expenses: salon equipment (chairs, hair dryers, steamers, UV lamps), beauty products purchased for use in services (not resale), air conditioning and electrical fittings for the salon, salon software subscriptions, and professional training courses. ITC on personal consumption items (food, personal purchases) is not eligible. The ITC reduces the net GST payable — if you collected ₹20,000 in GST from clients but paid ₹5,000 GST on supplies, you remit only ₹15,000.
FAQs
What is the SAC code for salons and beauty parlours?
The SAC code for hair salons, beauty parlours, spas, and barbershops is 999721 (hairdressing and beauty treatment services). All beauty services attract 18% GST.
Do small salons need to pay GST?
GST is mandatory only if annual turnover exceeds ₹20 lakh. Salons with monthly revenue below ₹1.67 lakh on average are typically below the threshold. Below ₹20 lakh, you can operate without GST registration — but you cannot charge GST or claim ITC.
Is salon GST the same for all services — haircut, facial, massage?
Yes. All salon and beauty treatment services use SAC 999721 at 18% GST regardless of the specific service — hair cutting, facials, threading, waxing, or spa massages all attract the same 18% rate.
What GST applies to beauty products sold at the salon?
Beauty products sold at the salon (shampoos, conditioners, serums, cosmetics) are goods, not services. They are taxed under their product HSN codes — typically 12% for basic beauty products (HSN 3304–3307) or 18% for luxury cosmetics. This is separate from the service invoice.
Why Businesses Stop Using Excel for GST Invoices
Manual GST calculation mistakes
One wrong CGST/SGST split or a misapplied rate triggers notices and ITC denial for your buyer.
Slow invoice creation
Copying last month's Excel file, updating dates, recalculating — 20 minutes for what should take 30 seconds.
Formatting breaks on every device
Excel invoices look different on every printer and PDF converter. Clients complain about unreadable layouts.
No easy sharing or payment link
Sending PDFs over WhatsApp with no way for clients to pay directly slows down collections.
Incorrect tax type (IGST vs CGST+SGST)
Excel can't auto-detect intra vs inter-state supply. Wrong tax type = ITC rejected for your buyer.
Disclaimer: The information in this article is for general informational purposes only and does not constitute professional tax, legal, or financial advice. GST rules and rates are subject to change. Consult a qualified CA or tax professional before making compliance decisions.
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