Gym Business Code in ITR and SAC Code for Gym Services (2026)

For AY 2026-27 the ITR code list has no entry called "gym" or "fitness centre". The closest fit, and the one most gym owners should discuss with their CA, is 20020: "Operation and maintenance of sports facilities", which is in the 44AD business list. On GST invoices, gym services use SAC 999723: "Physical well-being services including health club and fitness centre". Freelance trainers don't have a code of their own.

Both lists are official, and the exact wording below is copied from them. The codes describe what kind of business you run; your tax is worked out from your income and the scheme you use. Still, confirm your codes with a CA, especially if you have side income from PT, supplements or court rentals.

Quick answer: codes for gyms and related services

ITR codes are from the official ITR-4 schema for AY 2026-27; SAC codes are from CBIC's scheme of classification of services. Rows other than the first are guidance on the closest wording, not a ruling.

Where does the ITR business code list come from?

The Income Tax Department publishes the return schemas and offline utilities on its ITR downloads page. The code list is inside them: in ITR-4 (Sugam), Schedule BP has a dropdown of codes for 44AD businesses, a shorter one for 44ADA professions and one for 44AE transport. We checked the AY 2026-27 ITR-4 schema (version 1.1) and the ITR-3 schema; 20020 has the same wording in both.

In the culture and sport section, the list runs:

• 20020 - Operation and maintenance of sports facilities
• 20021 - Activities of sports and game schools
• 20022 - Organisation and operation of indoor/outdoor sports and promotion and production of sporting events
• 20023_1 - Sports Management
• 20023 - Other sporting activities n.e.c.
• 20024 - Other recreational activities n.e.c.

"n.e.c." means "not elsewhere classified".

Why 20020 is the closest fit for a gym

Nothing in the list mentions gyms, health clubs or fitness. The wording of 20020 closely matches the international standard industry classification: the UN's ISIC Rev.4 class 9311, "Operation of sports facilities", lists "fitness centers" among the facilities it covers, along with swimming pools, stadiums and bowling lanes, and includes "managing and providing the staff to operate these facilities". A gym selling memberships to its floor and equipment fits that description.

The other candidates are weaker:

• 20023 Other sporting activities n.e.c. is a catch-all. A CA may prefer it if your business is mainly classes rather than a facility.
• 20021 Activities of sports and game schools suits a coaching academy more than a gym.
• 21008 Other services n.e.c. is the general fallback for anything not listed, and tells the department less about you than 20020.

Pick one with your CA and use it every year. Consistency matters more than perfection here.

How the code fits into 44AD

In ITR-4, each business in Schedule BP has a name (up to 75 characters) and a code, and you can add more than one business. The ITR-4 validation rules for AY 2026-27 tie the two together: if you declare income under 44AD you must select a 44AD business code, and if you select a 44AD code you must declare income under 44AD. The same goes for 44ADA. The rules also say 44AD doesn't apply to people carrying on the professions in section 44AA(1).

That's why 20020 being in the 44AD list matters: a gym owner on presumptive taxation reports under 44AD, not 44ADA. Who qualifies, the turnover limits and the 6% and 8% deemed profit are covered in income tax for gym owners under 44AD.

If you file ITR-3 because you keep regular books, you still choose a code from the same list for your nature of business.

What about personal trainers?

There is no code for personal trainers or fitness instructors. The 44ADA profession list in the AY 2026-27 schema covers software and IT services, legal, accounting, tax, architecture, engineering, design, photography, film artists, social media influencers and a set of health practices. None of them is fitness training. The nearest healthcare entry, 18015, names "Nurses, physiotherapists or other para-medical practitioners", which suits a qualified physiotherapist, not a trainer.

So a freelance trainer coaching clients at different gyms usually ends up in the 44AD business list. Whether 20023 (other sporting activities) or another code fits best depends on how they work; ask a CA. A trainer on salary at your gym doesn't need a business code at all, as that's salary income.

The GST side: SAC 999723

CBIC's scheme of classification of services places gyms in:

• Heading 9997: Other services
• Group 99972: Beauty and physical well-being services
• SAC 999723: Physical well-being services including health club and fitness centre

Group 99972 is the group the GST Council cut from 18% with ITC to 5% without ITC from 22 September 2025, and its press release names "services of gyms, salons, barbers, yoga centres". The rate, the input credit condition and invoicing are in GST on gym membership.

Note the trap: 999652, "Sports and recreational sports facility operation services", sits in a different group (99965), and the 5% entry was announced for group 99972. Don't put 999652 on gym membership invoices. If you rent out a squash court or pool separately, ask your CA how that line is classified and taxed.

For a breakdown of what goes on the invoice itself, see the gym fee receipt format, and use the gym GST calculator to split a GST-inclusive fee.

Supplements and other goods

Goods use HSN codes, not SAC codes. If you sell supplements over the counter, your CA will pick the HSN codes and the ITR code for that retail activity. The ITR list has several retail codes, such as 09021 ("Retail sale of food, beverages and tobacco in specialized stores") and 09028 ("Retail sale of other products n.e.c"). Selling supplements also brings FSSAI registration into play; see selling supplements in your gym.

Will the codes change under the new Income-tax Act?

The Income Tax Department says the 1961 Act stands repealed from 1 April 2026, but returns for AY 2026-27 use the forms prescribed under the old Act, so the codes above apply to them. Under the Income-tax Act, 2025, "tax year" replaces "assessment year", and the forms for tax year 2026-27 will have their own schemas. Check that 20020 and its wording are still there when you file next year.

Quick checklist

• ITR code for the gym: 20020, agreed with your CA
• Same code each year unless the business changes
• Separate Schedule BP entries for genuinely separate businesses
• 44AD code with 44AD income; not a 44ADA profession code
• GST invoices: SAC 999723 for memberships
• Court or pool rentals and coaching academies classified separately with your CA
• Supplements: HSN codes for goods, not SAC
• Recheck the code list when the new Act's forms come out

Useful links

• ITR downloads and schemas, AY 2026-27 (Income Tax Department)
• ITR-4 schema with code list, AY 2026-27 (JSON)
• ITR-4 validation rules, AY 2026-27 (CBDT)
• Scheme of classification of services (CBIC)
• GST Council press release, September 2025
• ISIC Rev.4 class 9311 (UN Statistics Division)