HSN Code & GST Rate on Cosmetics, Perfumes & Toiletries

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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.