GST confuses many gym owners, mostly because they see it once a month when the CA calls. This post covers the basics for a gym or fitness studio in India. Rules change, so confirm the details for your gym with your CA.
What is the GST rate on gym membership?
Gym and fitness centre services are taxed at 18% GST. That covers memberships, personal training, group classes and day passes sold by a GST-registered gym.
The rate applies to the fee before tax. A ₹2,000 monthly membership becomes ₹2,360 with GST, unless you have priced the membership to include GST.
Which SAC code does a gym use?
Services are classified by SAC (Services Accounting Code). Gyms and health clubs generally fall under SAC 999723, “physical well-being services including health club and fitness centre”. Put the SAC code on every invoice.
When does a gym need GST registration?
A service business must register once its aggregate turnover crosses ₹20 lakh in a financial year, or ₹10 lakh in the special category states. Many gyms register earlier because corporate clients ask for GST invoices so they can claim input tax credit.
CGST and SGST, or IGST?
For fitness services, the place of supply is usually where the service is performed, which is your gym. So a typical gym invoice is intra-state and splits the 18% into:
- CGST 9% to the central government
- SGST 9% (or UTGST) to the state
IGST at 18% applies to inter-state supplies, for example some corporate wellness contracts billed across states. Your software should pick the right split from the place of supply instead of staff choosing it by hand.
What must a gym GST invoice show?
- Your gym’s legal name, address and GSTIN
- A unique, continuous invoice number for the financial year (up to 16 characters)
- The invoice date
- The member’s name, and their GSTIN for a business customer
- A description of the service and the SAC code
- The taxable value, the GST rate and the tax amount for each component
- The place of supply
- A signature or digital signature
Gaps in the invoice numbers, edited invoices and missing SAC codes are the most common problems CAs find at filing time.
Instalments, discounts and refunds
- Instalments: raise an invoice for each instalment as it falls due, so the tax matches the money you collect.
- Discounts: show the discount on the invoice before tax. GST is charged on the discounted value.
- Refunds and cancellations: issue a credit note against the original invoice rather than deleting it.
Making it automatic
Doing this by hand works for 50 members, not 500. Clasendra’s GST billing adds your GSTIN and SAC code to every invoice, splits CGST and SGST or IGST, keeps numbering continuous, puts a UPI QR on the invoice and exports the GST register for your CA. You can try it free for 14 days; see pricing.
This article is general information, not tax advice. Confirm the treatment for your gym with a chartered accountant.