GST Slashed: A New Era for Beauty and Wellness Services

The GST rate on beauty and wellness services, and daily-use products like shampoos and toothpaste, has been reduced from 18% to 5%. This move aims to lower living costs for lower-middle and poor classes. The reform seeks to simplify the tax structure but poses challenges for service providers without Input Tax Credit.

The government has cut the GST on beauty and wellness services from 18% to 5%, aiming to redefine these as essentials rather than luxuries.

Daily-use products, including shampoos and toothpaste, also see GST reductions, reflecting a priority to support lower-middle and poor sections.

Despite potential consumer benefits, service providers face challenges due to the lack of Input Tax Credit, creating questions about the real impact on consumer costs.

(With inputs from agencies.)