Tax for pet-care businesses in India

Pet grooming, boarding and daycare is a business, so use presumptive Section 44AD (6% digital, 8% other). The exception is veterinary clinical practice: a registered veterinarian is a professional and may use Section 44ADA at 50% instead. GST on pet-care services is generally 18% with input credit, registration applies at Rs 20 lakh, and selling pet products is a separate goods supply.

Presumptive + GST + TDS at a glance

Presumptive taxation

Section:: Sec 44AD
Deemed profit rate:: 6% on digital receipts / 8% on other receipts (grooming/boarding); a vet's clinical practice uses 44ADA
Classification:: business

GST treatment

Slab:: 18%
SAC:: 9983 / 9997 (pet grooming, boarding, veterinary services)
Composition eligible:: Yes
Reverse charge (RCM):: Not applicable

TDS exposure

Last reviewed: 29 May 2026

Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact Income Tax Department. Read our editorial scope →

Pet grooming, boarding, daycare and training in India is a business, so presumptive taxation under Section 44AD applies, not Section 44ADA. The one distinction to watch is veterinary clinical practice: a registered veterinarian is a professional, so a vet running a clinical practice may use Section 44ADA at 50% instead. GST on pet-care services is generally 18%, and registration applies at Rs 20 lakh of service turnover.

What business structure do pet-care businesses use?

The common patterns for pet-care businesses are: Sole proprietor, simplest, suits most groomers and small boarders on 44AD, Partnership or LLP, for a clinic or boarding facility sharing capital, Private limited, for a larger veterinary or pet-services group. The right structure depends on revenue, liability exposure, and personal circumstances, covered below.

Grooming, boarding and daycare: Section 44AD

Pet grooming, boarding, daycare and training is a business, so presumptive taxation is under Section 44AD: a deemed 8% of turnover, or 6% on digital receipts, with no detailed books or audit within the limits, up to Rs 2 crore (Rs 3 crore where cash is 5% or less). These are service businesses, not notified professions, so they do not use Section 44ADA.

Pet grooming, boarding and daycare is a business taxed under Section 44AD (6 or 8%). (Income-tax Act 1961 s.44AD (Income-tax Act 2025 s.58))

The veterinary distinction: a vet may use 44ADA

Veterinary clinical practice is different. A registered veterinarian is a professional, so a vet earning clinical fees may use Section 44ADA at 50% of gross receipts (up to Rs 75 lakh where cash is 5% or less, otherwise Rs 50 lakh). Where the same business mixes professional veterinary services with non-professional services like boarding and grooming and retail pet-product sales, the professional and business parts can be treated under their respective schemes, take advice on splitting them correctly.

A registered veterinarian's clinical practice is a profession and may use Section 44ADA (50% of receipts); grooming and boarding remain a business under 44AD. (Income-tax Act 1961 s.44ADA (Income-tax Act 2025 s.58); veterinary is a specified profession under s.44AA)

GST and pet-product sales

Pet grooming, boarding, daycare and veterinary services are generally taxed at 18% GST with input credit, with registration once service turnover crosses Rs 20 lakh. Selling pet products (food, accessories, medicines) is a separate supply of goods at the relevant goods rate, so bill product sales separately from services. Pet food and accessories carry their own GST rates that differ from the service rate.

Pet-care services are GST 18% with input credit; selling pet products is a separate goods supply at the goods rate. (CGST Act 2017 ss.22-24; SAC 9983/9997 (services); goods rate notifications (pet products))

Allowable expenses

Category	Examples	Tax treatment
Grooming and boarding equipment	Grooming tables, clippers, dryers, kennels, runs	Deductible; subsumed in deemed profit under 44AD
Consumables	Shampoo, pet food for boarders, bedding, cleaning supplies	Cost of sale; input credit if registered (non-composition)
Premises	Clinic or facility rent, electricity, water, waste disposal	Deductible if keeping books; in deemed profit under 44AD
Staff and vets	Groomers, attendants, visiting veterinarian fees	Deductible if keeping books; watch 194C/194J TDS if you pay them
Licences and insurance	Trade licence, public liability, accountant	Deductible business expense
Medical equipment (vet)	Diagnostic and surgical equipment for a clinic	Deductible; depreciable asset on regular books

Vehicle and travel costs

A mobile groomer or a vet making house calls can claim vehicle running costs under regular books, or rely on the deemed profit under Section 44AD which is treated as inclusive of such costs. A vet on 44ADA similarly does not separately claim vehicle depreciation within the deemed scheme.

Capital allowances and equipment

On regular books, grooming equipment, kennels and veterinary diagnostic or surgical equipment depreciate in the plant-and-machinery block (generally 15% WDV). Under presumptive schemes (44AD or 44ADA) no separate depreciation is claimed, but keep invoices so the written-down value is correct on any later sale.

Worked example

Dr Mehta — Mumbai, MH

veterinarian running a clinic that also offers grooming and boarding (2026-27)

Annual receipts Rs 40 lakh: Rs 24 lakh veterinary clinical fees, Rs 12 lakh grooming and boarding, Rs 4 lakh pet-product sales. GST-registered.

The veterinary clinical fees (Rs 24 lakh) are professional income, so Dr Mehta can use Section 44ADA at 50% on that part, deemed income Rs 12 lakh. The grooming and boarding (Rs 12 lakh) is a business under Section 44AD at 6 or 8%. The Rs 4 lakh of pet-product sales is a goods supply. He keeps the professional and business streams clearly separated, charges 18% GST on the services with input credit, and applies the correct goods rate on products. Mixing the streams without a clean split is the main risk.

Common audit triggers for pet-care businesses

Mixing professional veterinary income (44ADA) with grooming/boarding (44AD) without a clear split
Claiming full input credit while also selling exempt or differently-rated goods
Cash receipts over 5% of turnover while using the Rs 3 crore 44AD limit
Cash receipt of Rs 2 lakh or more from one client in a day (Section 269ST)
194C or 194J TDS in 26AS or AIS not reconciled with income reported
No GST registration after crossing Rs 20 lakh service turnover

Frequently asked questions

Is a pet groomer on 44AD or 44ADA?+

Section 44AD. Pet grooming, boarding, daycare and training are service businesses, not notified professions, so you declare a deemed 8% of turnover (6% on digital receipts). Only a registered veterinarian's clinical practice is a profession that can use 44ADA at 50%.

I am a vet but also run boarding and sell pet food. How is that taxed?+

Your veterinary clinical fees are professional income (eligible for Section 44ADA at 50%), your boarding and grooming is a business (Section 44AD at 6 or 8%), and your pet-product sales are a goods supply. Keep the three streams clearly separated and take advice on applying the correct scheme to each, mixing them without a split is the main risk.

What GST do I charge on pet care?+

Pet grooming, boarding, daycare and veterinary services are generally taxed at 18% with input credit, once you register at Rs 20 lakh of service turnover. Selling pet food, accessories or medicines is a separate supply of goods at the relevant goods rate, so bill products separately from services.

Can I claim my clinic equipment against tax?+

Yes. Grooming equipment, kennels and veterinary diagnostic or surgical equipment are business assets. Under regular books they depreciate (generally 15% WDV). Under a presumptive scheme (44AD for the business side, 44ADA for the veterinary side) the depreciation is treated as already included in the deemed profit, but keep invoices for the written-down value on any later sale.

Last reviewed: 29 May 2026