GST on Cosmetics and Beauty Products
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 gst on cosmetics, including the rates on products and services, and how it impacts retailers, salons, and consumers.
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GST for Cosmetic Products: Tax Rates
| Cosmetic Product | HSN Code | GST Rate |
|---|---|---|
| Lipsticks, foundation, mascara | 3304 | 18% |
| Perfumes and deodorants | 3303 | 18% |
| Shampoos and conditioners | 3305 | 18% |
| Face wash and scrubs | 3304 | 18% |
| Luxury or imported kits | 3304 | 28% |
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GST on Makeup Services and Beauty Parlours
| Service Type | SAC Code | GST Rate |
|---|---|---|
| Beauty parlour/salon services | 999712 | 18% |
| Bridal makeup & grooming | 999712 | 18% |
| Spa, facial, hair styling | 999713 | 18% |
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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.
I am a chartered accountant with over 14 years of experience. I understand income tax, GST, and balancing financial records. I analyze financial statements and tax codes effectively. However, I also have a passion for writing, which is different from working with numbers. Recently, I started writing articles and blog posts. My goal is to make finance easier for everyday people to understand.
Frequently Asked Questions (FAQs)
- What is the GST on cosmetics in India?Cosmetic products attract 18% GST, with certain high-end or imported luxury items taxed at 28%.
- Are salon and beauty services taxable under GST?Yes, GST on makeup services is 18%, whether offered by a freelancer or a registered salon.
- What is the GST on perfumes and deodorants?These fall under HSN Code 3303 and are taxed at 18%.
- Can beauty parlours claim Input Tax Credit?Yes, salons and beauty service providers can claim ITC on business-related expenses if GST registered.
- Are herbal or Ayurvedic cosmetics taxed differently?No, they are generally taxed at 18%, unless classified as medicinal products with proof of therapeutic effect.
