What is the GST rate on gym membership in 2026?

5%, without input tax credit, since 22 September 2025. That is 2.5% CGST plus 2.5% SGST on a normal in-state membership. Before that date the rate was 18% with input tax credit.

Can a gym still charge 18% GST and claim ITC?

No. The notification for beauty and physical well-being services gives a single 5% rate on the condition that input tax credit is not taken. There is no 18% option for gym services under that entry.

Is GST registration compulsory for a small gym?

Only when your aggregate turnover in a financial year crosses ₹20 lakh, or ₹10 lakh if you operate from Manipur, Mizoram, Nagaland or Tripura. Below that you can register voluntarily, but you would then have to charge GST.

Do I pay GST when a member pays for a year in advance?

Generally yes. For services, GST is due at the earlier of the invoice date or the date you receive payment, so an advance received for an annual plan is taxable when you receive it. Confirm the treatment of your plans with your CA.

GST on Gym Membership in India: 5% Rate, Rules and Examples

Q: What is the SAC code for gym services?

SAC 999723, described as physical well-being services including health club and fitness centre. It sits in Group 99972, the group the 5% rate applies to.

GST on gym membership in India is 5% without input tax credit (ITC), applicable from 22 September 2025, following the 56th GST Council meeting. Before that, gyms charged 18% and could claim ITC. You only need to register and charge GST once your aggregate turnover crosses ₹20 lakh in a financial year (₹10 lakh in Manipur, Mizoram, Nagaland and Tripura).

Everything below reflects the rules as of October 2026. GST changes often, so please confirm your specific situation with a CA before you change prices or invoices.

What exactly changed in September 2025?

The GST Council recommended cutting tax on "beauty and physical well-being services used by common man including services of gyms, salons, barbers, yoga centres" from 18% to 5% (GST Council press release). The Council's official FAQ confirms that health clubs, fitness centres and yoga are covered, at "5% without ITC".

The legal change came through Notification No. 15/2025-Central Tax (Rate), dated 17 September 2025, effective 22 September 2025. It sets central tax at 2.5% for services in Group 99972, with the condition that credit of input tax on goods and services used to supply the service "has not been taken". State tax mirrors it, giving 5% in total.

	Before 22 Sep 2025	From 22 Sep 2025
GST rate on gym services	18%	5%
Split (in-state)	9% CGST + 9% SGST	2.5% CGST + 2.5% SGST
Input tax credit	Allowed	Not allowed
Option to choose the other rate	n/a	No

Which SAC code do gyms use?

The official scheme of classification of services lists SAC 999723: "Physical well-being services including health club and fitness centre", inside Group 99972 (Beauty and physical well-being services). That is the code for gym services. If you also sell PT, group classes or anything unusual, ask your CA to confirm the classification for each.

What does "without ITC" mean for your costs?

Under the old 18% regime, the GST you paid on treadmills, rent, AC repairs or software could be set off against the GST you collected. Now you cannot take that credit for inputs used to supply the gym service. The GST you pay on purchases simply becomes part of your cost.

Whether you come out ahead depends on how much GST you pay on your own purchases. A gym that buys a lot of new equipment or does a big fit-out in a year feels the loss of ITC more. Run your own numbers.

Old credit and mixed businesses. If you had ITC in your ledger from before 22 September 2025, or you also sell things taxed at other rates (supplements, merchandise), the reversal and apportionment rules get technical. The Council's FAQ, answering a question about supplies that became exempt, says existing ITC can be used for supplies made up to 21 September 2025 and has to be reversed as per the CGST Act after that. How that applies to your gym's old credit is exactly where a CA earns their fee.

When does a gym need GST registration?

Section 22 of the CGST Act requires registration once your aggregate turnover in a financial year exceeds ₹20 lakh. In the special category States that still have the lower limit (after the exclusions in the section, that leaves Manipur, Mizoram, Nagaland and Tripura), the limit is ₹10 lakh.

"Aggregate turnover" is wider than membership fees. Under Section 2(6) it includes all taxable and exempt supplies of every business under the same PAN, across India, excluding the GST itself. So membership, PT, supplement sales and a second branch all count together.

A quick way to check where you stand

Say you have 120 members paying ₹1,500 a month on average, and you sell about ₹20,000 of supplements a month.

Memberships: 120 × ₹1,500 × 12 = ₹21,60,000
Supplements: ₹20,000 × 12 = ₹2,40,000
Aggregate turnover: ₹24,00,000

That is over ₹20 lakh, so registration is required. At 100 members paying ₹1,500 with no supplement sales, turnover would be ₹18,00,000, below the limit. Watch it month by month, especially around the New Year rush.

Should the price include GST or be plus GST?

Decide once, and say it clearly on your price board, WhatsApp messages and invoices. Here is the arithmetic both ways for a ₹1,200 monthly plan in the same state.

Price is GST-inclusive (₹1,200 total):

Taxable value = ₹1,200 ÷ 1.05 = ₹1,142.86
GST = ₹1,200 − ₹1,142.86 = ₹57.14
CGST ₹28.57 + SGST ₹28.57

Price is plus GST (₹1,200 + tax):

GST = ₹1,200 × 5% = ₹60
Member pays ₹1,260 (CGST ₹30 + SGST ₹30)

Look at what you keep. Inclusive, you keep ₹1,142.86 per member. Plus GST, you keep the full ₹1,200. On 150 members that is (₹1,200 − ₹1,142.86) × 150 = ₹8,571 a month, or about ₹1.03 lakh a year. Neither choice is wrong, but it is a real number, so decide it on purpose. For more on plan design, see how to price gym memberships.

How is GST handled on advance and annual fees?

For services, Section 13 of the CGST Act puts the time of supply at the earlier of the invoice date or the date you receive payment (where the invoice is issued within the prescribed time). Rule 47 gives 30 days from the supply of service to issue the invoice.

In practice, when a member pays ₹12,000 up front for an annual plan (GST-inclusive), you would normally account for the GST in the period you receive the money:

Taxable value = ₹12,000 ÷ 1.05 = ₹11,428.57
GST = ₹571.43 (split equally, about ₹285.71 each as CGST and SGST)

You do not get to spread that tax across the year just because the service is. Plan cash flow so this does not surprise you in a heavy renewal month. Instalment plans and part-payments raise their own invoicing questions, so check with your CA how to handle them.

What should your invoice show?

Section 31(2) requires a tax invoice showing the description, value and tax charged, plus the other particulars set out in the CGST Rules. Some of those particulars depend on your turnover and on whether the member is GST-registered, but a sensible gym invoice includes:

Your gym's legal name, address and GSTIN
A unique invoice number and date
The member's name
Description of the service (for example "Quarterly membership, 1 Jan to 31 Mar") and SAC 999723
Taxable value, rate, and CGST and SGST (or IGST) amounts
Total amount

Ask your CA for the exact mandatory list that applies to you.

Is the composition scheme worth it for a gym?

There is an optional composition scheme for service providers with turnover up to ₹50 lakh in the previous financial year, at 6% (3% CGST + 3% SGST). Under it you cannot collect tax from customers or claim ITC.

Compare it with the regular 5% rate, which also has no ITC now. Say members pay you ₹30,00,000 in a year either way:

Regular scheme, prices GST-inclusive: GST = ₹30,00,000 × 5 ÷ 105 = ₹1,42,857
Composition: 6% of ₹30,00,000 = ₹1,80,000, and you cannot show it on the bill

On these numbers composition costs ₹37,143 more a year, so for most gyms it looks worse after the rate cut. The advantage is simpler filing. Talk to your CA before choosing.

Which returns do you file?

Regular taxpayers file GSTR-1 (sales) and GSTR-3B (summary and payment). If your aggregate turnover is up to ₹5 crore, the QRMP scheme lets you file these quarterly while paying tax monthly. Most small gyms qualify.

Supplements and merchandise are taxed separately

Protein, shakers, T-shirts and gloves are goods, not the gym service. Each carries its own GST rate by HSN code, and those rates also changed in the September 2025 revision for many items. Do not assume 5% for them. Check each product's HSN rate with your supplier or CA.

The short version

Gym services: 5% GST, no ITC, since 22 September 2025. SAC 999723.
No 18%-with-ITC option under that entry.
Register once aggregate turnover crosses ₹20 lakh (₹10 lakh in Manipur, Mizoram, Nagaland, Tripura). Supplements and branches count.
Say clearly whether prices include GST.
Advance and annual fees are generally taxed when received.
Invoices should show GSTIN, SAC, taxable value and the tax split.
Composition at 6% is usually costlier than 5% now.
Supplements and merchandise follow their own HSN rates.
Confirm all of this with your CA; rates and rules do change.

Starting from scratch? See how to start a gym in India for the registrations that come before GST.