New Delhi- Salon and fitness bills are likely to get cheaper as the GST rate on beauty and physical well-being services, including those at health clubs, salons, barbers, fitness centres, yoga, etc, has been slashed from 18 per cent with Input Tax Credit (ITC), to 5 per cent without tax credit.

Also, daily use products like hair oil, toilet soap bars, shampoos, toothbrushes and toothpaste are likely to get cheaper as taxes on them have been cut to 5 per cent from 12/18 per cent currently.

The new Goods and Services Tax (GST) rate will be effective from September 22. As part of the rate rationalisation exercise at the 56th meeting of the GST Council, the Centre and states consented to reduce GST from 18 per cent to 5 per cent on beauty and physical well-being services used by the common man, including services of gyms, salons, barbers, yoga centres, etc.

Other daily use items like talcum powder, face powder, shaving cream and aftershave lotion, too, could see the reduction in prices as GST has come down to 5 per cent from 18 per cent.

Issuing a set of FAQs, the finance ministry said the GST rate rationalisation is“intended to lower the monthly expenditure for the lower middle class and the poorer sections of society” and hence, even though toilet soap bar has been slashed to 5 per cent, liquid soaps have been retained at 18 per cent.

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