Fitness clubs, CrossFit boxes, pilates studios and commercial gyms are among the fastest growing wellness businesses in urban India. Their GST changed sharply under GST 2.0.
From 22 September 2025, gym, health club, fitness centre and yoga services are taxed at 5% GST without input tax credit (ITC), down from 18% with ITC. The 56th GST Council approved the cut, and CBIC has clarified that the 5% rate is mandatory: a gym cannot choose 18% with ITC instead.
This guide covers the SAC code, what the 5% rate covers, the charitable yoga exemption, what “without ITC” means for equipment costs, and how to bill personal training.
Find SAC Codes & Calculate Taxes
Need to look up SAC codes for spa services, personal training or sports coaching? Use our GST Rate & SAC Finder, or see the quick reference on GST on gym memberships.
SAC Code and the 5% GST Rate
Gym and fitness centre services fall under SAC 999723 (physical well-being services, including health clubs and fitness centres):
- GST rate: 5% without ITC (2.5% CGST + 2.5% SGST within a state, or 5% IGST).
- Before 22 September 2025: 18% with ITC.
- Registration threshold: a gym must register once its aggregate turnover (membership fees, registration charges, locker rent, merchandise sales) exceeds ₹20 lakh in a financial year (₹10 lakh in Manipur, Mizoram, Nagaland and Tripura).
Rate Breakdown for Related Fitness Services
| Service / Sale | SAC / HSN Code | GST Rate (from 22 Sep 2025) | Notes |
|---|---|---|---|
| Gym memberships (monthly, annual) | 999723 | 5% (no ITC) | Earlier 18% |
| Personal training sessions | 999723 | 5% (no ITC) | Part of fitness services |
| Locker and towel charges billed with membership | 999723 | 5% (no ITC) | Ancillary to the main fitness service |
| Commercial yoga classes | 999723 | 5% (no ITC) | Earlier 18% |
| Steam, sauna, spa and salon services | 9997 | 5% (no ITC) | Beauty and well-being services, earlier 18% |
| Gym equipment bought by the gym (treadmills, weights) | HSN 9506 | 18% | Becomes a cost, as ITC is not available |
| Supplements sold over the counter | Per product HSN | Rate of that product | A sale of goods, not a fitness service |
| Sports coaching by charitable entities | 9996 | Exempt | Only for entities registered under Section 12AA/12AB |
| Yoga by Section 12AA / 12AB trusts | 9997 | Exempt | Charitable activity exemption |
Worked Example: Membership Billing
A gym in Pune charges ₹3,000 a month for membership.
- From 22 September 2025: GST at 5% = ₹150 (₹75 CGST + ₹75 SGST). The member pays ₹3,150.
- Before GST 2.0: GST at 18% = ₹540, so the member paid ₹3,540.
The member saves ₹390 a month. The gym, however, can no longer offset GST paid on its own costs (see below).
The Yoga Exemption Myth: Commercial vs Charitable Trusts
A common belief is that “yoga is exempt from GST in India”. Under Entry 1 of Notification No. 12/2017-Central Tax (Rate), services by an entity registered under Section 12AA/12AB of the Income-tax Act by way of charitable activities are exempt, and advancement of yoga is a charitable activity.
That exemption applies only to entities holding a valid Section 12AA/12AB registration, such as recognised non-profit foundations and ashrams. If a commercial gym, private pilates studio or independent instructor charges ₹3,000 a month for yoga classes, 5% GST without ITC applies.
What “Without ITC” Means for Gym Owners
Under the old 18% rate, a new gym could claim ITC on equipment, fit-outs and rent and use it against the GST it collected on memberships. That is no longer possible for fitness services taxed at 5% without ITC.
- Equipment: treadmills, multi-gyms, dumbbells and other HSN 9506 items still carry 18% GST, but that GST is now a cost of setting up the gym.
- Rent and services: GST charged by the landlord, maintenance contractors and software vendors is also a cost.
- Existing credit: a gym that makes only 5%-without-ITC supplies should review ITC in its electronic credit ledger as of 22 September 2025, as credit relating to these supplies may need to be reversed. Take advice on the exact amount.
- Mixed businesses: if the gym also sells goods such as supplements or apparel at their own GST rates, it can claim ITC on inputs used for those taxable sales, and must split common credits (for example rent) proportionately under Rules 42 and 43.
When pricing memberships, budget for GST on capital purchases as part of your cost rather than as a recoverable credit.
Structuring Personal Training (PT) Commissions
In most fitness clubs, freelance personal trainers work on a revenue share (for example 60% to the trainer, 40% to the gym):
- Billing to the client: the gym invoices the full PT package at 5% (for example ₹10,000 + ₹500 GST = ₹10,500).
- Payout to the trainer: an unregistered trainer (turnover below ₹20 lakh) bills the gym without GST. A registered trainer providing fitness services charges GST at the applicable rate, which the gym cannot claim as ITC. The gym must also deduct TDS where applicable, for example under Section 194J for professional fees above the threshold.
Frequently Asked Questions (FAQs)
What is the GST rate on gym membership in 2026?
5% without input tax credit, applicable from 22 September 2025. Earlier it was 18% with ITC.
Can a gym charge 18% GST and claim ITC instead of 5%?
No. CBIC has clarified that the 5% rate without ITC for beauty and physical well-being services is mandatory.
Is GST on personal training also 5%?
Yes. Personal training is a fitness service under SAC 999723 and is taxed at 5% without ITC.
Can a gym opt for the GST composition scheme?
Service providers with turnover up to ₹50 lakh can opt for the scheme under Section 10(2A) at 6% without ITC. As the regular rate for gyms is now 5% without ITC, the composition scheme is usually not beneficial for a gym that only provides fitness services.
Is GST applicable on forfeited membership fees or cancellation charges?
CBIC’s Circular No. 178/10/2022-GST treats cancellation and forfeiture charges as part of the consideration for the main supply. They are generally taxed at the same rate as the membership, that is 5%.
Is yoga taught at a commercial gym exempt from GST?
No. Only yoga provided as a charitable activity by an entity registered under Section 12AA/12AB is exempt. Commercial yoga classes are taxed at 5%.