IMPLICATIONS OF CHANGE IN GST RATE ON GYMNASIUM SERVICES W.E.F 22ND SEP 2025

[Kush Kalra]

Respected Sir/Madam,

The GST council has reduced the GST Rate on Gymnasium services (Beauty and Wellness Services) w.e.f 22.09.2025 from 18% with ITC to 5% without ITC. Following clarification are required for ITC in this case:

1) What will be the treatment of balance in electronic credit Ledger as on 21.09.2025. Should it be reversed or same can be used to discharge the output liability after 21.09.2025.

2) The GST Rate w.e.f from 22.09.2025 is 5% without ITC, If ITC is not used to discharge output liability can we claim refund of this ITC as on 21.09.2025 as same will not be used further.

Regards

Kush Kalra  

AI Summary

GST rate cut: Gymnasium, beauty and wellness services move from 18% with ITC to 5% without ITC from 22-09-2025 GST on gymnasium/beauty and wellness services is reduced from 18% with ITC to 5% without ITC w.e.f. 22-09-2025. Electronic credit ledger balances as of 21-09-2025 need not be reversed, but such ITC cannot be applied to discharge output liability on those services taxed at 5% without ITC from 22-09-2025. Consequently, the supplier must pay tax on those services in cash, and the pre-existing ITC balance cannot be refunded or used against the post-change liability for gymnasium/beauty and wellness services.