What GST rate applies to gym memberships?
Gym, health club and fitness centre services are usually taxed at 18% GST and use SAC 999723. How the 18% is charged depends on who pays:
- A member in your own state: 9% CGST plus 9% SGST.
- A business registered in another state that buys memberships for its staff: 18% IGST.
Rates and classifications can change. Confirm the rate and SAC that apply to your gym with your CA.
When does a gym need GST registration?
A service business generally has to register for GST once its aggregate turnover in a financial year crosses ₹20 lakh, or ₹10 lakh in the special category states. A gym below the threshold can still register voluntarily. Once registered, the gym must charge GST on its fees and file returns, even in months with no sales.
Small service businesses may also be able to opt for the composition scheme for services, which charges a lower flat rate on turnover but does not allow the gym to collect GST from members or claim input tax credit, and needs a bill of supply instead of a tax invoice. Whether it suits your gym is a question for your CA.
GST-inclusive fees: how to split a membership price
Most gyms quote fees with GST included. To find the GST inside a fee, divide the fee by 1.18 to get the taxable value; the rest is GST, split equally into CGST and SGST for a member in your state.
| Taxable value | CGST 9% | SGST 9% | Total paid |
|---|---|---|---|
| ₹1,271.19 | ₹114.41 | ₹114.40 | ₹1,500.00 |
What must a gym's GST tax invoice show?
A tax invoice for each payment should carry the details the GST rules require, including:
- Your gym's legal name, address and GSTIN.
- A unique invoice number, in sequence for the financial year, and the date.
- The member's name and, for a registered business, its GSTIN and address.
- The place of supply (state name and code).
- The SAC (999723), a description of the service and the taxable value.
- The GST rate and amount, split into CGST and SGST, or IGST.
Invoice numbers must not repeat within a financial year. Software that numbers invoices automatically removes the most common mistake.
Corporate members and B2B invoices
When a business pays for memberships, put its GSTIN and name on the invoice. If the business is registered in another state, charge IGST instead of CGST and SGST. Note that input tax credit on health and fitness centre memberships is generally blocked for the buyer under Section 17(5) of the CGST Act, apart from narrow exceptions — so don't promise a corporate client that they can claim the GST back.
GST returns a gym files: GSTR-1 and GSTR-3B
| Return | What it reports | When |
|---|---|---|
| GSTR-1 | Every invoice and credit note issued (sales) | Monthly, or quarterly under the QRMP scheme |
| GSTR-3B | Summary of tax payable and input tax credit, with payment | Monthly, or quarterly under QRMP with monthly tax payments |
Smaller businesses with turnover up to ₹5 crore can usually choose the quarterly QRMP scheme. Due dates are set by the GST department and do change, so check the GST portal or your CA each period.
Refunds and mistakes: credit notes
Never edit or delete an issued invoice. If a fee is refunded or an invoice is wrong, issue a credit note against it and, if needed, a corrected invoice. Under Section 34 of the CGST Act a credit note must be declared by 30 November after the end of the financial year (or the date you file the annual return, if earlier).
Input tax credit on what your gym buys
A gym on the regular GST scheme can usually claim credit for the GST it pays on things used for the business — gym equipment, the rent of commercial premises, and business software — and set it off against the GST it collects from members. Keep the supplier's tax invoices and check that they appear in your GSTR-2B. Your CA will confirm what qualifies.
How GymSetora handles it
- Pro+ or add-onA GST tax invoice is issued automatically for every payment, numbered per financial year
- Pro+ or add-onBusiness members can add their GSTIN for B2B invoices, and buyers from another state are charged IGST
- Pro+ or add-onCredit notes to cancel or correct an invoice, with the Section 34 deadline tracked
- Pro+ or add-onGSTR-1 for any month as JSON for the GST portal and as an Excel workbook: B2B, B2C, credit notes, SAC summary and document series
- Pro+ or add-onYour GSTIN is checked for format, state code and check digit; SAC 999723 and 18% GST are set by default
Questions owners ask
Is GST 18% on gym membership in India?
Usually yes. Gym and fitness centre services are generally taxed at 18% GST under SAC 999723, charged as 9% CGST plus 9% SGST for members in your state, or 18% IGST for a business registered in another state. Confirm your case with your CA.
Does a small gym have to charge GST?
Only once it is registered. A service business generally must register when yearly turnover crosses ₹20 lakh (₹10 lakh in special category states); below that, registration is optional. A registered gym must charge GST on its fees.
Can a company claim input tax credit on gym memberships for employees?
Generally no. Section 17(5) of the CGST Act blocks input tax credit on membership of a health and fitness centre, with narrow exceptions. The company's CA decides whether any exception applies.
Which GST returns does a gym file?
A gym on the regular scheme files GSTR-1 for its invoices and GSTR-3B for the tax summary and payment, monthly or quarterly under the QRMP scheme. GymSetora exports each month's GSTR-1 as JSON for the GST portal or as Excel.
Pro+ or add-on