BAJAJ FINSERV DIRECT LIMITED
Tax Insight

GST Rate on Cosmetics, Perfumes, and Toiletries

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Deepshikha Nainani

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Goods and Services Tax (GST) is a comprehensive indirect taxation system implemented across India. It aims to simplify the tax structure by replacing multiple taxes. The GST rate for beauty and personal care products, such as cosmetics, perfumes, and toiletries, varies and directly impacts the pricing of these items. It is essential for consumers and businesses to understand these rates, as they affect the cost and demand for such products, thereby influencing market trends.

Why Knowing the GST Rates on Cosmetics, Perfumes, and Toiletries is Essential

Understanding GST on cosmetics, perfumes, and toiletries is crucial for both consumers and businesses. The addition of GST can significantly affect the price of a product, which, in turn, influences its market demand. A higher GST rate increases the cost of goods, leading to changes in consumer behaviour. 

For consumers, knowing these rates allows them to make informed purchasing decisions, particularly when budgeting for luxury items such as perfumes or skincare products. Businesses, on the other hand, must stay updated on these rates to price their products correctly and strategically position themselves to meet market demands.

Below is a table showcasing the HSN code and GST rate for cosmetic products, perfumes, and toiletries:

HSN Code

Category Description

Latest GST Rate (%)

Effective Date

3303

This category includes perfumes, colognes, and other toilet waters used for personal fragrance. These are classified as luxury personal care items.

18%

15/11/2017

3304

This category covers a wide range of beauty products, such as face creams, lotions, makeup products, sunscreens, and skincare essentials (excluding traditional items like kajal, kumkum, bindi, sindur, and alta). These items are considered essential in beauty regimes.

18%

15/11/2017

3304

This category is specific to traditional Indian cosmetic items like kajal (excluding pencil sticks), kumkum, bindi, sindur, and alta, commonly used in personal grooming or for religious purposes.

Nil

01/07/2017

3304

This classification repeats the previous description, covering beauty and skincare essentials such as sunscreens, suntan lotions, and manicure/pedicure preparations.

18%

15/11/2017

3305

This category includes hair care products such as shampoos, conditioners, hair oils, and other hair treatment products. These are taxed under the GST rate for essential grooming items.

18%

15/11/2017

3307

This category includes products like pre-shave and aftershave preparations, deodorants, bath preparations, hair removal products (depilatories), and other personal grooming items not listed elsewhere. Room deodorisers, whether scented or not, are also included.

18%

15/11/2017

GST on Popular Cosmetics

Chapter 33 of the Harmonised System of Nomenclature (HSN) pertains to the GST on cosmetic products, perfumes, and other toiletry preparations. The HSN code for cosmetics is used to classify these products for taxation purposes. Under this chapter, GST is not applicable to kumkum, bindi, sindur, and alta. All other goods under Chapter 33 are taxed at 18%. Here are the different categories covered under the 18% GST rate:

Category

GST Rate

Makeup Products (Lipsticks, Foundations, Blush)

18%

Skincare (Lotions, Moisturisers, Sunscreens)

18%

Hair Care (Shampoos, Conditioners, Hair Oils)

18%

Perfumes, Deodorants, and Eau de Toilettes

18%

Deodorants and Body Sprays

18%

GST on Personal Hygiene Products

GST rates for personal hygiene products vary across categories, affecting pricing and consumer choices. Here are the rates for different categories of personal care items:

Category

GST Rate

Soaps and Hand Wash

18%

Shampoos, Conditioners, Hair Oils

18%

Personal Hygiene Products (e.g., sanitary pads)

0%

Dental or Oral Hygiene Products

18%

Understanding the different GST rates and the HSN code for beauty products, perfumes, and toiletries is important for both consumers and businesses. These rates directly affect product pricing, demand, and purchasing trends. Staying up to date with these GST rates enables consumers to make informed purchases, while businesses can strategically price their products to remain competitive in the market.

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Hi! I’m Deepshikha Nainani
Blogger

Deepshikha is a marketing and communications expert with over a decade of experience across various industries. With expertise in performance content, digital campaigns and brand management, she excels in creating data-driven, creative solutions that drive growth and engagement. Holding certifications in digital marketing and content strategy, she is passionate about combining creativity with analytics to create compelling marketing narratives that resonate. During her downtime, Deepshikha enjoys watching films and documentaries, listening to music, cooking and traveling.

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