If you run a laundry or dry-cleaning shop in India and your turnover is approaching ₹20 lakh / year, GST suddenly applies to you. Here's the no-nonsense version of what you actually need to do — written for shop owners, not chartered accountants.
The short answer
Laundry and dry-cleaning services are taxed at 18% GST under HSN code 9987. You must register for GST if your annual turnover crosses ₹20 lakh (₹10 lakh in special-category states like Uttarakhand, Tripura, etc.). Once registered, every invoice you raise must show CGST + SGST (intra-state) or IGST (inter-state, rare for laundry).
Do I need to register?
- Annual turnover < ₹20 lakh (or ₹10 lakh in special-category states) — registration is optional. Most small shops skip.
- Annual turnover ≥ ₹20 lakh — registration is mandatory within 30 days of crossing the threshold.
- Inter-state supply — if you provide services across state lines (delivering ironed shirts to a customer who lives in another state — rare for laundry), registration is mandatory regardless of turnover.
One tip: if you're close to ₹20 lakh and growing, register voluntarily. It looks more professional to corporate / B2B customers and you can claim input tax credit on your detergents, hangers, and machinery.
The 18% breakdown
- Intra-state (customer and shop in the same state): 9% CGST + 9% SGST = 18%.
- Inter-state (different states): 18% IGST. Rare in laundry — but applies if you serve corporate clients with HQ in another state.
What goes on the invoice?
A GST-compliant invoice must include:
- Your business name + GSTIN + address
- Customer name + GSTIN if they're also registered (relevant for B2B)
- Invoice number (sequential)
- Date of issue
- Description of services (e.g. "Wash & iron — 5 kg")
- HSN code: 9987
- Total taxable value
- CGST + SGST split (or IGST), shown explicitly
- Grand total
- Signature (digital is fine; "computer-generated invoice" disclaimer works)
What about the composition scheme?
Under the composition scheme, service providers with turnover up to ₹50 lakh can pay a flat 6% GST instead of 18% — but they CANNOT charge GST to customers and CANNOT claim input tax credit. For most laundry shops with B2C customers, this is actually a better deal than the regular scheme. Check with a CA before opting in.
Filing requirements
- GSTR-1 — outward supplies (your sales). Filed monthly or quarterly depending on turnover.
- GSTR-3B — summary return + tax payment. Monthly.
- GSTR-9 — annual return.
Most small shops use a CA for ₹500–1000/month to handle this. The cost is much lower than getting a notice for non-filing.
Common mistakes
- Charging GST without registration. Illegal. Either register or don't charge — never collect tax you can't deposit.
- Mixed billing. Some shops charge GST on dry-clean and skip on wash & iron. Either both are taxable or neither — your turnover determines it, not the service type.
- Not issuing serial invoice numbers. Invoices must be sequential. "Receipt #1, #2, #3..." with no gaps. WashOS handles this automatically — gaps trigger audit flags.
- Cash-only invoicing. Even for cash payments, an invoice is required if you're GST-registered. Print it, hand it over, no exceptions.
How software helps
Manual GST handling on 30 invoices a day is asking for an error. WashOS auto-calculates CGST/SGST splits, generates sequential invoice numbers, and prints the GSTIN + HSN code on every bill once you fill the billing details in settings. Set up your business profile once and forget about it. Try the free trial if you'd rather your software handle this than your CA.
Disclaimer
This is a general explainer, not legal or tax advice. For your specific case, talk to a chartered accountant — most will give you a free 30-minute consultation if you're a new business.