GST compliance is one of the most critical requirements for running a salon business in India. This guide walks through every step — from GSTIN registration to monthly GSTR-3B filing — for standalone parlours, salon chains, and spas.
Salon services attract 18% GST; the correct SAC code for hairdressing is 999721
GSTR-3B must be filed by the 20th of each month; annual turnover above ₹20 lakh requires mandatory registration
AyeSalon auto-splits CGST and SGST, prints the GSTIN on every invoice, and exports a monthly GST summary for filing
How to do GST billing for your salon in India
Step-by-step guide to setting up GST-compliant billing for Indian salons, from GSTIN registration to monthly GSTR-3B filing.
Understand GST applicability for salons: Salon and beauty services attract 18% GST under SAC code 999721. GST registration is mandatory once annual turnover crosses ₹20 lakh (₹10 lakh in North-Eastern states). Voluntary registration below this threshold allows you to claim Input Tax Credit on purchases.
Register for GSTIN: Visit gst.gov.in with your PAN card, Aadhaar, business address proof, and bank account details. Registration takes 3–7 working days. Your 15-digit GSTIN must appear on every invoice you issue. Multi-state salons need a separate GSTIN per state.
Configure your billing software for GST: Enter your GSTIN into AyeSalon. Create service items with correct SAC codes and GST rates. AyeSalon then applies the correct rate, splits CGST and SGST automatically, and prints GSTIN and SAC codes on every invoice.
Issue GST-compliant invoices: Every invoice must show your salon name, registered address, GSTIN, each service with SAC code, GST rate, CGST and SGST amounts (9% each for 18% rate), and total payable. For B2B clients, collect their GSTIN so they can claim Input Tax Credit.
Generate monthly reports and file GST returns: File GSTR-3B by the 20th of each month. Salons with annual turnover below ₹5 crore may use the quarterly QRMP scheme. Export your GST summary from AyeSalon directly for GSTR-3B filing. Reconcile records monthly.
Avoid common GST mistakes: Use SAC code 999721, not a generic services code. Advertise prices consistently as inclusive or exclusive of GST. File nil returns on time even when tax payable is zero. Claim ITC on salon consumables, colour chemicals, and equipment purchases.
Use AyeSalon for automated GST billing: AyeSalon automatically splits CGST and SGST, prints GSTIN and SAC codes on every invoice, shares GST-compliant PDF invoices via WhatsApp, and generates a monthly GST summary report ready for GSTR-3B filing.