GST sounds complicated, but for most gyms it comes down to four questions: do you need to register, what rate applies, how do you price, and what goes on the invoice.
This is a general guide, not tax advice. Rules change, so check the details for your gym with your CA.
Do you need to register?
A business that supplies services must register for GST once its total turnover in a financial year crosses ₹20 lakh (₹10 lakh in some special category states). Below that, registration is optional.
Count all your income from the gym: memberships, personal training, supplements and anything else you sell.
What rate applies?
Gym and fitness centre memberships attract 18% GST. When the member and your gym are in the same state, which is almost always the case, it is split in two:
- CGST 9%
- SGST 9%
If you ever bill someone in another state, it is charged as IGST 18% instead. Products like supplements can have different rates, so check each one with your CA.
Inclusive or exclusive prices?
Decide once and stick to it, because members compare.
| Plan price | Exclusive of GST | Inclusive of GST |
|---|---|---|
| Price written on the board | ₹3,000 | ₹3,000 |
| Taxable value | ₹3,000 | ₹2,542.37 |
| GST at 18% | ₹540 | ₹457.63 |
| Member pays | ₹3,540 | ₹3,000 |
Most gyms that sell to individuals quote inclusive prices. Members see one number and there are no surprises at the desk. The cost is that your income per plan is lower than the board price.
What must a GST invoice show?
- Your gym’s name, address and GSTIN
- An invoice number that is unique and in sequence for the financial year
- The date
- The member’s name (and their GSTIN and address, if they are registered and ask for a business invoice)
- A description of the service and its SAC code
- The taxable value, the GST rate and the tax amount, split into CGST and SGST (or IGST)
- The total
Every month
Registered gyms file returns: GSTR-1 for sales and GSTR-3B for the summary and payment, monthly or quarterly depending on the scheme you choose. Your CA will ask for a list of every invoice, with taxable value and tax, for the period. Keep your records for at least six years.
Common mistakes
- Handwritten receipts with no invoice number. Numbers must run in order without gaps or repeats.
- Changing an invoice after it is issued. Cancel it and issue a new one instead, so the trail is clear.
- Forgetting balances. When a member pays in parts, each payment still needs a proper receipt.
How Gymint helps
Gymint gives every payment an invoice number automatically and prints your GSTIN and logo on it. You choose inclusive or exclusive pricing, CGST and SGST or IGST, once in Settings, then Invoices & GST. At the end of the month, download the invoice report to Excel and send it to your CA.