“Reduce the GST for salon sector”, A plea, Hair and Beauty Federation India makes to FM Nirmala Sitharaman.
The Indian salon industry is a booming sector, experiencing rapid growth driven by increasing beauty consciousness and disposable incomes. Urbanization and a growing middle class are major factors propelling its expansion. The industry’s resilience and potential for innovation continue to attract investment. That makes it a vital component of India’s beauty and wellness market. Despite its growth, the industry faces challenges such as high GST rates,
which strain profitability and customer affordability.
Hence, there is a need to address this issue faced by one of the most thriving and profitable industries. The Hair and Beauty Federation has formally appealed to Finance Minister Nirmala Sitharaman ahead of the Union Budget presentation. It is seeking a reduction in the 18 per cent GST levied on the salon industry.
The Hair and Beauty Federation (HBF), was formed a year ago by Ashok Paliwal as President, HBF. Additionally, it boasts industry experts like Uday Takke, Dr. Madhumita Saikia, Indira Ahluwalia, Savio John Perira as Vice President, Nirmal Randhava as General Secretary and others. The federation today has 60+ associations as members.
“The 18 per cent GST imposed on the salon sector in India is significantly impacting the industry. This high tax rate is creating a financial burden on salon owners, many of whom are small business operators. The increased cost is often passed on to customers. That makes salon services less affordable and leads to a decline in clientele”, says Ashok Paliwal as President, HBF.
He further adds, “Additionally, the high GST rate limits the industry’s ability to invest in quality products, staff training, and advanced equipment. A reduction in GST would alleviate these challenges, fostering growth and sustainability in the salon industry”.
Supporting the cause, Mukul Pawar, Co-Founder, Lookwell Salon, states, “It is the most important aspect which the government has to address. Until now we as a salon used to incorporate the GST amount as part of the services cost. Consequently, we used to take the hit of the GST. But now when we start charging it separately it’s affecting our business.”
By urging for a tax rebate, the Federation aims to make salon services more accessible to consumers, stimulate industry growth, and support employment. Their plea reflects the industry’s hope for governmental support. This will help foster a more sustainable and prosperous future for the beauty and wellness sector.
