Lower GST, higher bills: Salons and fitness centres raise prices despite tax relief
Salons, gyms and yoga clubs have increased prices by 10-20% despite a GST rate reduction. This is due to the withdrawal of input tax credit (ITC), forcing businesses to absorb taxes on expenses. Without ITC, the benefit of lower GST rates is nullified, leading to price hikes to maintain profitability.
Most salon chains, fitness centres, gyms and yoga clubs across the country have raised prices by 10-20% despite the reduction in goods and services tax (GST) rate to 5% from 18% from September 22, citing the simultaneous withdrawal of the option to claim an input tax credit (ITC).
