The Government’s decision to reduce GST on gyms and fitness centres from 18% to 5% (without ITC) is a landmark reform aimed at promoting affordable fitness and preventive healthcare across India. Effective from 22 September 2025, this move reflects a clear shift in policy thinking, recognising fitness not as a luxury service but as an essential part of healthy living.
With rapid urbanisation, sedentary work culture, and rising lifestyle-related health issues, cities such as Gurgaon, Delhi NCR, Bengaluru, Mumbai, Pune, Hyderabad, and Chennai have witnessed a growing demand for structured fitness facilities. The GST reduction directly supports this trend by lowering costs for consumers and encouraging wider participation in fitness activities.
GST Applicability on Gyms and Fitness Centres
Under GST law, services provided by gyms, fitness centres, yoga studios, health clubs, and similar establishments fall under the category of fitness and wellness services. These services attract GST on the membership fees or charges collected from customers.
As per the current position effective 22 September 2025, the GST rate applicable on gym and fitness centre services is 5% without input tax credit (ITC). This means gyms cannot claim credit for GST paid on expenses such as rent, equipment, interior fit-outs, or professional services. However, the reduced rate ensures that the final cost borne by customers remains significantly lower compared to the earlier 18% regime.
GST is applicable on:
- Monthly, quarterly, or annual gym memberships
- Personal training fees
- Group fitness classes and workout programs
- Package-based wellness or fitness subscriptions
The tax is charged on the invoice value raised by the gym or fitness centre.
Registration Requirement for Gyms Under GST
Gyms and fitness centres are required to obtain GST registration if their aggregate annual turnover exceeds the prescribed threshold, which is generally ₹20 lakh (₹10 lakh in special category states). Once registered, they must:
- Charge GST at the applicable rate
- Issue GST-compliant tax invoices
- File periodic GST returns
- Maintain proper records
In cities like Gurgaon and other metro areas, where gym memberships and wellness services are priced at a premium and volumes are high, most organised fitness centres are already registered under GST and will directly benefit from simplified pricing and improved customer acceptance due to the lower tax rate.
Current GST Rate Summary
As of 22 September 2025:
- GST Rate on gyms and fitness centres: 5%
- Input Tax Credit: Not available
- Objective: Make fitness affordable and accessible to the masses
This simplified rate structure ensures that the benefit of tax reduction is passed on directly to consumers.
Benefits of GST Registration for Gyms and Fitness Centres
GST registration offers several strategic and commercial benefits to gyms and fitness centres, especially in competitive urban markets like Gurgaon.
Registered gyms gain legal recognition and credibility, which builds trust among customers, corporate clients, and business partners. Many corporate wellness programs and housing societies prefer engaging with GST-registered fitness centres for compliance and transparency reasons.
GST registration in Gurgaon also enables structured pricing and professional invoicing, which enhances brand image and simplifies financial management. It becomes easier to track revenue, manage accounts, and comply with regulatory requirements.
For gyms planning expansion or franchise models, GST registration is often mandatory. It allows businesses to scale operations across multiple locations while maintaining uniform tax compliance.
Additionally, GST-registered gyms find it easier to work with banks, landlords, and service providers, as proper GST records improve financial credibility and documentation.
Final Words
The reduction of GST on gym in Gurgaon and across India from 18% to 5% is a progressive reform that makes fitness accessible, affordable, and inclusive. Combined with the benefits of GST registration for gyms, this policy supports both consumers and fitness businesses while aligning with India’s long-term public health vision.
As urban lifestyles continue to evolve, affordable and structured fitness services will play a vital role in building a healthier, more active, and productive society.
