- GST on salon and spa services
- From 22 September 2025, beauty and physical well-being services (salons, barbers, spas, health clubs, fitness and yoga centres) are reported at 5% GST without input tax credit, under Notification 15/2025-Central Tax (Rate). CBIC’s FAQs said this rate is mandatory, with no option to charge 18% and claim credit as before.
- Retail products on the same bill
- Shampoos, serums, hair tools and skin products you sell are goods, taxed at their own GST rates, which also changed for many items in September 2025.
- Shops and Establishments registration
- In Maharashtra, salons come under the Shops and Establishments (Regulation of Employment and Conditions of Service) Act 2017. Depending on headcount, an establishment either registers or sends an intimation to the facilitator. The Act also limits daily and weekly working hours and sets rest breaks.
- Municipal trade and health licences
- Many city corporations, including the BMC in Mumbai, have trade or public-health licensing and self-certification for hair dressing saloons. The exact licence, its name and conditions differ by city and premises.
- Deficiency in service under the Consumer Protection Act 2019
- A client who suffers a burn, an allergic reaction, hair damage or a botched bridal look can file a complaint before a consumer commission for deficiency in service. Commissions have ordered salons and clinics to refund and pay compensation.
- Packages, expiry and refunds
- Consumer commissions have ordered beauty and wellness businesses to refund unused package sessions, and one-sided “no refund under any condition” terms can be challenged as unfair. How your terms will hold up is a question for your lawyer.
- Gift cards and prepaid balances
- RBI’s Master Directions on prepaid payment instruments treat closed-system instruments, which can be used only at the issuer’s own business and allow no cash withdrawal, as outside its authorisation need. Gift cards usable at partner businesses are a different matter.
- Client photos and data under the DPDP Act 2023
- Phone numbers, visit history, skin and scalp notes and before and after photos are personal data. The salon is responsible for having the client’s consent and using the data only for the purpose given.
- Treatments with a medical edge
- Laser, chemical peels, injectables and some skin procedures may need a doctor or fall under medical rules, depending on the treatment and your state. Clinics run by dermatologists also follow medical council rules on advertising.