GST on Gym Membership in India: 5% Without ITC From 22 September 2025

What is the GST rate on gym membership in India now?

From 22 September 2025, GST on gym membership in India is 5% without input tax credit (ITC). Before that date, gym and fitness services were taxed at 18%, and gyms could claim credit for the GST paid on their inputs.

The change came from the 56th GST Council meeting. The Council press release lists a reduction of GST from 18% to 5% on beauty and physical well-being services, including services of gyms, salons, barbers and yoga centres. Business Today reported CBIC's statement that the new rate applies from 22 September 2025 to gyms, health clubs, fitness centres and yoga services.

In law, the change was made by Notification No. 15/2025-Central Tax (Rate), dated 17 September 2025, which amends the services rate notification for "beauty and physical well-being services falling under Group 99972". It sets the central tax component at 2.5%, provided that "credit of input tax charged on goods and services used in supplying the service has not been taken".

Can a gym choose 18% with ITC instead?

No. The 5% rate for gym and fitness services is mandatory. The notification's explanation says these services attract the rate prescribed for them, "which is a mandatory rate", and CBIC said the same publicly, as reported by Business Today.

This matters because gyms cannot pick the option that suits their cost structure. If your gym was charging 18% and claiming ITC before 22 September 2025, invoices and returns need to reflect the new rate for supplies from that date.

Questions about credit already lying in your electronic credit ledger, or about long plans paid in advance across the change date, depend on your facts. The GST Council FAQs say the rate on advances is decided by the time of supply provisions in Section 14 of the CGST Act. Consult your CA on how these rules apply to your plans and payments.

Why is there no ITC on rent and equipment any more?

Because the 5% rate applies only if the gym does not take credit for GST charged on the goods and services it uses to supply its service. GST paid on rent, equipment and similar inputs can no longer be set off against the GST you collect from members.

Typical gym inputs where GST now stays in your costs:

• Rent for commercial premises, where the landlord charges GST
• Gym equipment, machines and their repairs
• Housekeeping, security and maintenance contracts
• Software subscriptions, marketing and professional fees
• Consumables used on the gym floor

Before the change, a gym could set off the GST on those bills against the 18% it collected. Now that GST is a cost, a trade-off Business Today also noted for operating costs like rent, products and equipment. A gym paying high rent in a commercial complex, or one that recently bought new equipment, feels this more than a gym in owned premises with older machines.

What does the change mean for gym pricing?

Members pay less tax on each bill, but the gym's own costs rise because input GST is no longer recoverable, so the right price depends on your cost structure. Do not assume the whole rate cut can be passed on, and do not assume none of it can.

1. Work out your input GST: total the GST on rent, equipment, services and other inputs that you used to claim.
2. Compare: weigh the lower tax on members' bills against the credit you have lost.
3. Decide on base prices: keep, adjust or restructure base fees, and apply the same logic across plans.
4. Show GST clearly: state on price lists, the website and invoices whether prices include or exclude GST.
5. Communicate: members will have read that gym GST went down, so explain any price decision simply and honestly.
6. Check advance plans: for annual or long plans paid around the change, ask your CA which rate applies.

Gyms that also sell personal training, class packs or online classes should confirm with their CA how each is classified, because the 5% rate covers beauty and physical well-being services under Group 99972, not every product a gym sells.

How should gyms number GST invoices?

Every tax invoice needs a consecutive serial number that is unique for the financial year. Rule 46 of the CGST Rules requires "a consecutive serial number not exceeding sixteen characters, in one or multiple series", using letters, numbers, hyphens or slashes, "unique for a financial year".

• One unbroken series per gym: no gaps, no reused numbers and no numbers written by hand on the side.
• Separate series where useful: the rule allows more than one series, so membership invoices and counter sales can each have their own.
• Unique within the year: a prefix showing the financial year, such as 25-26/0001, keeps numbers unique and readable within the sixteen-character limit.
• Other required details: Rule 46 also lists items such as the supplier's name, address and GSTIN and the date of issue; make sure your invoice format covers them all.
• Cancel, do not delete: keep cancelled invoices on record so the series has no unexplained gaps.
• PDF copies: send members a PDF and keep copies for your records.

The same discipline helps with cash. A numbered receipt for every payment is the simplest way to stop leakage at the desk, as explained in our guide to gym fee collection.

What receipt should a gym without a GSTIN give?

A gym that is not registered for GST must not charge GST, so it should issue a plain receipt with no tax on it. Section 32 of the CGST Act says a person who is not a registered person "shall not collect in respect of any supply of goods or services or both any amount by way of tax".

• State clearly on the receipt that the gym is not registered for GST.
• Do not print a GST line, a GSTIN field or a tax amount.
• Still number receipts in an unbroken series; it helps reconciliation and any later review.
• Show the member's name, the plan, the period covered, the amount paid and the payment method.

Whether your gym must register depends on turnover and other conditions in the GST law. Gyms with several branches, or owners who run other businesses, should check how turnover is counted. Consult your CA before deciding.

How is GST charged on supplements sold at the counter?

Supplements, drinks and apparel sold at the counter are goods, taxed at the rate that applies to each product, not at the 5% service rate. Goods rates are set separately, for example in Notification No. 9/2025-Integrated Tax (Rate), and depend on how each product is classified.

• Check each product's HSN code and current rate with your CA or supplier before you sell it.
• Do not apply the gym membership rate to products just because they are sold at the gym.
• Give counter sales their own receipt series, with GST shown per item.
• Track stock so that sales, purchases and counter cash all reconcile.
• Ask your CA how input tax credit works for goods bought for resale, since the no-ITC condition is tied to inputs used for the gym service.

How Balvira Can Help

Balvira, gym and akhara management software built by DVM Techno, numbers invoices in an unbroken series for each gym and saves them as PDF. A gym without a GSTIN gets a receipt that says so, and counter sales of supplements, apparel and drinks have their own receipt series with per-item GST and stock tracking. The software keeps the records clean; your CA still decides the tax treatment. See our gym management software page for details, and our gym software buying guide for what else to check.

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