New GST on Cosmetics and Beauty Products
Quick Summary
- The new GST rate for most cosmetic products in India is 18%, effective after September 22, 2025.
- Luxury or imported cosmetic kits previously taxed at 28% will now have a GST rate of 18%.
- Beauty parlour services, including bridal makeup and spa treatments, are taxed at an 18% GST rate.
- Businesses in the beauty industry must register for GST if their turnover is over ₹20 lakh and file regular returns.
- The unified GST simplifies the tax system and allows full input tax credit, benefiting beauty businesses.
Whether it’s a daily-use face wash or a luxury makeup kit, cosmetics and beauty products are part of millions of personal care routines in India. But how are these items taxed under GST? This guide explains the cosmetic gst rate, including the rates on products and services, and how it impacts retailers, salons, and consumers.
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New GST Rate on Cosmetic Products in India
The Government of India has revised the GST structure effective 22nd September 2025. Below is a consolidated comparison of the new and old GST rates applicable to cosmetic products and beauty services. No compensation cess applies.
GST on Cosmetic Products
| Cosmetic Product | HSN Code | GST Rate (After 22nd Sept 2025) |
GST Rate (Before 22nd Sept 2025) |
|---|---|---|---|
| Lipsticks, foundation, mascara | 3304 | 18% | 18% |
| Perfumes and deodorants | 3303 | 18% | 18% |
| Shampoos and conditioners | 3305 | 18% | 18% |
| Face wash and scrubs | 3304 | 18% | 18% |
| Luxury or imported kits | 3304 | 18% | 28% |
Note: Luxury or imported cosmetic kits have been reduced from 28% to 18%, bringing them in line with other cosmetic products. All other major beauty products continue under the 18% GST slab
(After 22nd Sept 2025) 18%
(Before 22nd Sept 2025) 18%
(After 22nd Sept 2025) 18%
(Before 22nd Sept 2025) 18%
(After 22nd Sept 2025) 18%
(Before 22nd Sept 2025) 18%
(After 22nd Sept 2025) 18%
(Before 22nd Sept 2025) 18%
(After 22nd Sept 2025) 18%
(Before 22nd Sept 2025) 28%
GST on Makeup Services and Beauty Parlours
| Service Type | SAC Code | GST Rate (After 22nd Sept 2025) |
GST Rate (Before 22nd Sept 2025) |
|---|---|---|---|
| Beauty parlour or salon services | 999712 | 18% | 18% |
| Bridal makeup and grooming | 999712 | 18% | 18% |
| Spa, facial, hair styling | 999713 | 18% | 18% |
(After 22nd Sept 2025) 18%
(Before 22nd Sept 2025) 18%
(After 22nd Sept 2025) 18%
(Before 22nd Sept 2025) 18%
(After 22nd Sept 2025) 18%
(Before 22nd Sept 2025) 18%
How to Calculate GST on Beauty Products
GST is calculated on the taxable value of the product or service mentioned on the invoice.
Formula
GST Amount = Taxable Value × GST Rate
Total Invoice Value = Taxable Value + GST Amount
Example 1: Lipstick Purchase
If a lipstick is priced at ₹1,200:
GST = 18% of ₹1,200
GST = ₹216
Total Invoice Value = ₹1,416
Example 2: Luxury Makeup Kit
If a luxury cosmetic kit costs ₹5,000:
GST = 18% of ₹5,000
GST = ₹900
Total Invoice Value = ₹5,900
Example 3: Beauty Parlour Service
If a bridal makeup service costs ₹10,000:
GST = 18% of ₹10,000
GST = ₹1,800
Total Invoice Value = ₹11,800
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GST Compliance for the Beauty Industry
- Register under GST if turnover exceeds ₹20 lakh
- Charge 18% GST on both products and services
- Use appropriate HSN and SAC codes
- File monthly or quarterly GST returns
- Maintain accurate billing and inventory records
Input Tax Credit (ITC) for Beauty Businesses
- Inventory and cosmetic stock purchases
- Advertising and branding costs
- Interior setup for stores or salons
- Shop or office rent and utilities
GST Impact on Beauty and Cosmetics Sector
| Before GST | After GST |
|---|---|
| VAT + Excise duties (12%–26%) | Unified GST rate: 18% or 28% |
| Limited input credit | Full Input Tax Credit available |
| Multi-tax complexity | Simplified national tax system |
Understanding the gst on cosmetics helps beauty product sellers, salons, and consumers plan pricing and remain compliant. Whether you run a local parlour or an online beauty brand, staying on top of GST rates and filing helps streamline your business operations.
Conclusion
Understanding the gst on cosmetics helps beauty product sellers, salons, and consumers plan pricing and remain compliant. Whether you run a local parlour or an online beauty brand, staying on top of GST rates and filing helps streamline your business operations.
