The development comes after the Ministry of Home Affairs (MHA) objected to the move.
When asked about the letter issued by the MHA terming certain decisions as to the dilution of guidelines, Chief Minister Vijayan said: "There is no confrontation between the State government and the Centre."
"Kerala is following all directions issued by the Centre. Barbershops will not be opened and restaurants will only provide online delivery," he told the reporters, adding that public transport would not be allowed.
"There was a decision to open barbershops but many experts have pointed out against the decision. So the Kerala government is withdrawing the decision," he said.
Earlier, Chief Secretary Tom Jose said that if needed, then the State government will make necessary modifications to the lockdown guidelines in the wake of a communication received from the Central government.
The MHA had objected to the decision of Kerala government to allow services like barbershops, local workshops, restaurants, etc., and had urged the State government to revise its lockdown guidelines.
The Government of India had said that violation to lockdown measures reported posed a serious health hazard to the public and risk the spread of COVID-19.
Union Home Secretary Ajay Bhalla wrote to all Chief Secretaries and a separate letter had been sent to the Kerala Chief Secretary asking them not to dilute lockdown guidelines in any manner.
In his letter to the Kerala Chief Secretary, Bhalla had stated that the consolidated revised guidelines on the measures to be taken by the Ministries/Departments of the Government of India has been circulated on April 15 for containment of COVID-19.
Kerala Minister Kadakampally Surendran had said that relaxations have been given abiding by the direction issued by the Central government. He had added that the Centre may have asked for an explanation due to some misunderstanding.
India is under a nation-wide lockdown that came into force on March 25 to contain the spread of coronavirus, which has claimed 559 lives in the country. Last week, Prime Minister Narendra Modi announced the extension of lockdown till May 3.
( With inputs from ANI )