If it's white and fluffy it's fungus.
If it's cream or flesh coloured it's a tumour.
Try adding salt and if there's no improvement after a few days, it's probably a gill tumour. There's no cure for tumours so you leave the fish until it has trouble swimming, breathing or eating, then euthanise it.
Goll tumours in rainbowfish can be linked to Fish Tuberculosis. As a precaution, avoid putting your hands in the tank if you have open wounds (cuts/ scratches) because the bacteria that cause Fish TB can get into open wounds and cause an infection. Wash your hands with warm soapy water after working in the tank.
Make sure the fish get plenty of plant matter in their diet.
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SALT
You can add rock salt (often sold as aquarium salt), swimming pool salt, or any non iodised salt (sodium chloride) to the aquarium at the dose rate of 1 heaped tablespoon per 20 litres (5 gallons) of water. If there is no improvement after 48 hours you can double that dose rate so there is 2 heaped tablespoons of salt per 20 litres.
Keep the salt level like this for 1 to 2 weeks. If there's no improvement after a week with salt, then it's a tumour and you can stop using salt.
The salt will not affect the beneficial filter bacteria, fish, plants, shrimp or snails.
After you use salt and the fish have recovered, you do a 10% water change each day for a week using only fresh water that has been dechlorinated. Then do a 20% water change each day for a week. Then you can do bigger water changes after that. This dilutes the salt out of the tank slowly so it doesn't harm the fish.
If you do water changes while using salt, you need to treat the new water with salt before adding it to the tank. This will keep the salt level stable in the tank and minimise stress on the fish.
When you first add salt, add the salt to a small bucket of tank water and dissolve the salt. Then slowly pour the salt water into the tank near the filter outlet. Add the salt over a couple of minutes.