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

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....MPLICATIONS OF CHANGE IN GST RATE ON GYMNASIUM SERVICES W.E.F 22ND SEP 2025<br> Query (Issue) Started By: - Kush Kalra Dated:- 4-11-2025 Last Reply Date:- 12-11-2025 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>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. Followin....

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....g 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 wil....

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....l not be used further. Regards Kush Kalra&nbsp;&nbsp; Reply By Sadanand Bulbule: The Reply: GST-02 Reforms do not affect the existing&nbsp; Input Tax Credit balance, it remians intact. You are allowed to carry forward and utilise the same to pay Output Tax at the reduced rate as per law. Reply By Kush Kalra: The Reply: Thanks sir for your reply, the new gst rate w.e.f 22/09/2025 is 5% with....

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....out itc, so the tax liability needs to be discharged in cash. In this case can ITC be used. Reply By Sadanand Bulbule: The Reply: Valid ITC (upto 21/09/2025) need not be reversed but cannot be used for or refunded against gym services taxed at 5% without ITC from 22/09/2025. Therefore tax is to be paid in cash. Reply By KASTURI SETHI: The Reply: I concur with the views at Serial No.2 expresse....

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....d by Sh.Sadanand Bulbule, Sir. Reply By Shilpi Jain: The Reply: W.r.t. ITC on capital goods whose useful life has not crossed 5 years, there could be requirement of reversing credit in terms of rule 43.&nbsp; Any ITC left over, cannot be claimed as refund. Use it to pay off your 5% liability.<br> Discussion Forum - Knowledge Sharing ....