The wellness and fitness industry has grown rapidly in India. Gyms, yoga studios, Zumba classes, slimming centres, wellness chains, spas and therapeutic studios are now part of daily life. With this expansion, GST compliance has become a real challenge.
Many service providers still struggle with choosing the correct SAC code, applying the correct rate, and handling ITC properly. This handout explains everything about GST on Physical Wellness & Fitness Services in simple, practical, and legally accurate language.
Physical wellness and fitness services fall under two broad GST classifications, depending on the nature of activities performed.
Physical Fitness Services & Well-Being Services (SAC 999723)
These include:
- Gym services
- Aerobics
- Zumba and dance-based fitness
- Pilates
- Personal fitness coaching
- Yoga classes (when run commercially)
- Spa services
- Sauna and steam baths
- Slimming and weight loss programs
- Massage (non-medical)
- Body contouring
- Cosmetic wellness and beauty-based wellness therapy
All these are also treated as services.
However, when products (like supplements or wellness kits) are bundled with services, the supply may become a mixed supply and taxed at the highest applicable rate.
Relevant SAC/HSN Codes
| Activity / Service | Applicable SAC | Remarks |
|---|---|---|
| Gym, Fitness Centre, Aerobics | 999723 | Core fitness services |
| Yoga classes (commercial) | 999723 | Exempt only for charitable organisations |
| Zumba / Dance Fitness | 999723 | Falls under fitness services |
| Personal Training | 999723 | Specialised coaching |
| Spa / Sauna / Steam | 999723 | Physical well-being |
| Slimming / Weight-loss | 999729 | Non-medical slimming |
| Massage (non-medical) | 999723 | Not healthcare |
| Beauty & Wellness Therapy | 999723 | Cosmetic and wellness |
| Package including products | Mixed Supply | Highest GST rate applies |
Gst rate 18% applicable for all above.
Input Tax Credit (ITC) Rules
ITC Allowed
Service providers can claim ITC on:
- Rent of wellness centre or gym
- Purchase of fitness equipment or spa machinery
- Repairs and maintenance
- Advertisement and digital marketing
- Office supplies
- CA fees, consultancy, software subscriptions
ITC Not Allowed (Blocked Under Section 17(5))
- Free spa/massage services given to clients
- Beauty treatment used personally by owners
Place of Supply Rules
Services Provided at a Physical Location (Gym, Spa, Wellness Centre)
Place of supply = the location of the centre.
Online Fitness or Wellness Coaching
- B2C → customer location
- B2B → recipient’s registered location
Foreign Clients
Online training to clients outside India may qualify as Export of Services (zero-rated), provided foreign exchange is received.
GST Registration Requirements
GST registration becomes mandatory when:
- Annual turnover crosses ₹20 lakh (₹10 lakh for special category states)
- Online coaching is offered to clients in other states (B2C)
- Services are exported
- The business has branches in multiple states
Under Section 24, inter-state online supply to individuals requires compulsory GST registration, even if turnover is below the threshold.
Compliance Requirements
Fitness and wellness service providers must file:
- GSTR-1 (monthly or quarterly)
- GSTR-3B (monthly)
- GSTR-9 (annual)
- Maintain proper invoice records
- Apply correct SAC codes
- Issue e-invoices if the turnover crosses the notified limit
Latest GST Updates for This Sector
Recent GST Council discussions indicate upcoming clarifications on:
- Classification of wellness vs healthcare
- ITC eligibility for bundled wellness packages
- Distinction between medical physiotherapy and commercial therapy
- GST applicability on wellness retreats and hybrid packages
Notifications are expected soon, and service providers should stay updated through official GST channels.
Physical wellness and fitness services fall squarely under taxable categories in GST, except for very specific exemptions. The biggest compliance challenges come from misclassification, incorrect ITC claims, and confusion between medical and non-medical services.
A disciplined GST approach—correct SAC codes, proper invoicing, and accurate ITC handling—can help fitness centres, gyms, spas, slimming clinics and wellness studios operate confidently and avoid legal scrutiny.
