Archive · 16 Sep 2025
Government Directs GST Benefits to Consumers: Insurance, Salons, and Gyms
The government is making some changes to how taxes work to help people.
If you go to a salon, gym, or yoga class, you'll pay less in taxes starting September 22.
Also, insurance companies have been told to lower prices for health and life insurance.
This is because of changes in the Goods and Services Tax (GST).
Although businesses will also be affected, it should mean cheaper prices for consumers, making it easier to afford these services.
GST rate reduced to 5% (without ITC) for salons, gyms, spas, and yoga classes.
This change is effective from September 22, lowering consumer costs for these services.
Insurance companies are directed to pass on GST benefits to policyholders.
Health and life insurance premiums are now exempt from GST (0% tax).
The move is expected to boost consumer spending and increase insurance penetration.
- Who
- CBIC, government, and insurance companies
- What
- Implementing and passing on GST benefits.
- When
- Effective September 22 (for salons, gyms, yoga) and immediately for insurance.
- Where
- India
- Why
- To make services and insurance more affordable and increase accessibility.
Consumers
Service Providers/Insurers
Cost
Consumers
Expect lower costs for services and premiums.
Service Providers/Insurers
May need to adjust pricing due to changes in ITC and potential profitability concerns.
- Services Affected
- Salons, gyms, yoga, health & life insurance
- GST Rate (Salons, Gyms, Yoga)
- 5% without ITC
- Previous GST Rate (Salons, Gyms, Yoga)
- 18% with ITC
- GST on Health and Life Insurance
- 0%
- Expected Consumer Impact
- Lower prices on select services and insurance
- Impact on Businesses
- Potential for adjusted pricing strategies
