Goodbye 18%, Hello 5% (Everything Indian Salons Need To Know)
Author
DINGG TeamDate Published
From September 22, salons in India will charge only 5% GST, not 18%.
This is big news for every salon owner. A lower GST means your services just became cheaper for your clients. More people can afford to book, and that means more money for your business.
But here is the big question
How do you update prices, bills, and client messages without confusion?
Let us show you.
The New GST Rule
What Every Salon Owner Must Know
The Big Change +
The Big Opportunity
The government has reduced GST on salon, spa, barbershop, fitness, and wellness services from 18% to 5%. This change makes beauty and wellness services more affordable for the common person.
Lower prices usually mean more clients and more bookings.
When It Happens
The new 5% GST rate will apply from September 22, 2025. Salon owners must be ready before this date.
Update your billing systems, price lists, and staff training so there is no confusion.
No Input Tax Credit (ITC)
The 5% GST does not allow ITC. This means you cannot claim back the tax you pay on products, rent, or equipment.
This is important for your profit planning.
The DINGG Difference
How We Help You Handle GST Changes
Effortless Financial Compliance
DINGG’s billing and reporting modules are built for Indian tax rules. From day one, your invoices are compliant with GST.
When the rate changes, the DINGG software system adjusts without errors.
With DINGG, you can pull daily, weekly, and monthly reports that show your sales and GST collection.
From September 22, you will instantly see how the new rate impacts your revenue.
No Pricing Headaches
Updating GST for every service manually takes hours. DINGG lets you update prices in bulk with just a few clicks.
Every service, every bill, every report will be accurate and automatic.
Your 3-Step Action Plan to Capitalize on the 5% GST
Step 1
Update Your Pricing with Confidence
Manual changes are risky. DINGG’s system makes this easy in minutes.
Go to your dashboard, click on "Tax & Billing." > Change the GST rate from 18% to 5% for your services. > The system will automatically apply the new rate to all your services. > This saves you from billing mistakes and ensures every invoice is accurate.
Step 2
Communicate the Savings to Your Clients
Lower prices are good news! DINGG’s marketing tools make sure your clients hear about it.
Use DINGG’s CRM to segment your clients.
Use our WhatsApp integration to send a bulk message to all of them instantly.
A simple, clear message like “Enjoy your favorite service at a new, more affordable price thanks to the GST cut!” can drive more bookings.
Step 3
Track Your Profits and Stay Ahead
The GST cut is meant to grow your business, and DINGG helps you prove it with data.
> After September 22, check your DINGG analytics dashboard.
> See the reports that show your revenue and bookings. You will see a clear increase in client footfall and sales.
> Compare your growth with previous months to see the real difference the GST cut makes.
FAQs
Q1. What is the new GST rate for salons in India?
The GST on salon and wellness services has been reduced from 18% to 5%.
Q2. From when is the new 5% GST effective?
The new GST rate will be effective from September 22, 2025.
Q3. Does the 5% GST include Input Tax Credit (ITC)?
No. This 5% rate does not allow ITC. That means you cannot claim back the tax you pay on purchases like products, rent, or equipment.
Q4. How will the GST cut affect my salon pricing?
You will need to update your billing system and price list to reflect 5% GST instead of 18%.
Q5. Will the GST cut make salon services cheaper for clients?
Yes. With GST reduced to 5%, services will be more affordable. This can attract more clients to your salon.
Q6. Do I need to change my billing system manually?
Not if you use DINGG. The system updates GST rates in bulk and applies them automatically to every bill.
Q7. Can lower GST help my salon earn more?
Yes. Lower GST makes your services more attractive to clients. More bookings mean more revenue, even if ITC is not available.
It’s More Than Just a Tax Cut
The GST cut is a huge opportunity for salons in India. Services are now more affordable, which means more clients will walk through your doors.
But success depends on how well you manage this change. With DINGG, you don’t just handle the new tax rule; you turn it into a clear, profitable growth story.
You can update prices easily, communicate the savings to your clients on WhatsApp, and instantly see the increase in your sales through clear reports.
Don’t just react to the change. Master it.
Book a free demo with DINGG today and see how simple GST management can be.
