The current rate position is genuinely unsettled in public sources, and this page will not pretend otherwise.
Gym and fitness services have long been taxed at 18% with input tax credit, and many references still state that. Other sources report a change effective 22 September 2025 moving physical well-being services to 5% without input tax credit. Those positions have very different consequences - 5% without ITC can cost a gym with heavy equipment purchases more than 18% with it.
Confirm the rate applying to you with your CA, or against the relevant CBIC notification, before you configure anything. A software vendor is not the right source for a tax position, including this one.
Sources: GST invoices - gym membership, Busy - GST for gym 2026, Credlix - SAC 999723.
What is settled
Fitness services are taxable
Gym membership, personal training, group classes, Zumba and aerobics are taxable supplies. The characterisation of yoga can differ depending on how the service is provided and described. If a meaningful share of your revenue is yoga, get that answer in writing.
SAC code
Fitness and physical well-being services generally sit under SAC 999723 - health clubs and fitness centres. SAC 999722 is also cited for recreational and sporting services. If you sell memberships, retail supplements and physiotherapy under one GSTIN, those are not necessarily one code.
Registration threshold
| Situation | Threshold |
|---|---|
| Services, most states | Rs 20 lakh aggregate turnover |
| Services, special category states | Rs 10 lakh |
| Mixed goods and services | Check which threshold applies to combined turnover |
Special category states include the North Eastern states, Himachal Pradesh and Uttarakhand.
At Rs 1,500 per member per month, a gym passes Rs 20 lakh at roughly 110 active members. Most gyms in a tier-one city cross the threshold well before they feel like a large business.
What a compliant invoice has to show
| Field | Notes |
|---|---|
| Your GSTIN | On every invoice, not just annual ones |
| Member name | And address where required |
| Invoice number | Sequential and unbroken - gaps are a filing problem |
| Invoice date | Rate applied is the rate in force on this date |
| Service description | Plan name and period |
| SAC code | See above |
| Taxable value | Before tax |
| CGST + SGST, or IGST | Intra-state splits into two lines; inter-state is one |
| Total |
The field gyms most often get wrong is sequential numbering. Software that generates invoice numbers from a counter that resets, or skips numbers on a cancelled transaction, creates gaps you have to explain later.
The mistakes that cost money
Cash payments with no invoice. A member paying cash still needs an invoice raised. Undocumented cash is the most common reconciliation problem in a gym.
Discounts applied after tax. A discount should reduce the taxable value before tax is calculated, not be deducted from the total afterwards.
Freeze and refund handling. A frozen membership later partly refunded needs a credit note, not an edited invoice. Editing an issued invoice creates a mismatch at filing.
Multi-branch under one GSTIN. Branches in different states need separate registrations. One GSTIN across state lines is a structural error, not a filing slip.
Reconciling by hand. If your software cannot produce a GST report matching invoices to a period, someone rebuilds it in a spreadsheet monthly - and that is where errors enter.
What to ask a software vendor
- “Send me a sample GST invoice generated by your system.” Not a mockup - an actual export. This single request separates vendors who implemented GST from vendors with a field labelled GST.
- “Is invoice numbering sequential and gap-free across cancellations?”
- “Can it produce a GST report for a filing period?”
- “How does it handle a credit note for a refund or partial freeze?”
- “Can it handle separate GSTINs for branches in different states?”
Torzil generates GST-compliant invoices with your GSTIN and tax breakdown, keeps numbering sequential, and includes a dedicated GST report for filing. Rate configuration is yours to set on your CA’s advice - which is the correct division of responsibility.