New GST on Cosmetics and Beauty Products
- Most cosmetic and beauty products in India generally attract 18% GST. The cosmetic gst rate depends on the product category and applicable HSN classification.
- Products such as perfumes, make-up preparations, skin-care products, hair preparations, and deodorants generally attract 18% GST under applicable classifications.
- Beauty and physical well-being services such as salons and similar services are taxed separately under applicable GST provisions.
- Businesses dealing in cosmetic products must comply with GST registration, invoicing, and return filing requirements where applicable.
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 GST rates applicable to cosmetic products. While most cosmetic items continue to attract 18% GST, the shampoo gst rate has been revised from 18% to 5% for shampoos classified under HSN 3305 effective from 22 September 2025.
GST on Cosmetic Products
| Cosmetic Product | HSN Code | GST Rate (From 22 Sep 2025) | GST Rate (Before 22 Sep 2025) |
|---|---|---|---|
| Lipsticks, foundation, mascara | 3304 | 18% | 18% |
| Perfumes and toilet waters | 3303 | 18% | 18% |
| Shampoos | 3305 | 5% | 18% |
| Other hair preparations | 3305 | 18% | 18% |
| Face wash and skin-care preparations | 3304 / applicable HSN | 18% | 18% |
Cosmetic Product
HSN Code
GST Rate (From 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Cosmetic Product
HSN Code
GST Rate (From 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Cosmetic Product
HSN Code
GST Rate (From 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Cosmetic Product
HSN Code
GST Rate (From 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Cosmetic Product
HSN Code
GST Rate (From 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Note: Most cosmetic products continue to attract 18% GST. However, shampoos were reduced from 18% to 5% from 22 September 2025.
GST on Makeup Services and Beauty Parlours
| Service Type | SAC Code | GST Rate (From 22 Sep 2025) | GST Rate (Before 22 Sep 2025) |
|---|---|---|---|
| Beauty parlour or salon services | Group 99972 | 5% without ITC | 18% with ITC |
| Bridal makeup and grooming | 999722 / 999729, as applicable | 5% without ITC | 18% with ITC |
| Spa, facial and hair styling | 999723 / 999722 / 999721, as applicable | 5% without ITC | 18% with ITC |
Service Type
SAC Code
GST Rate (From 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Service Type
SAC Code
GST Rate (From 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Service Type
SAC Code
GST Rate (From 22 Sep 2025)
GST Rate (Before 22 Sep 2025)
Note: Beauty and physical well-being services under Group 99972 attract 5% GST without Input Tax Credit (ITC) from 22 September 2025.
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 = 5% of ₹10,000
GST = ₹500
Total Invoice Value = ₹10,500
Beauty and physical well-being services attract 5% GST without Input Tax Credit (ITC) from 22 September 2025.
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GST Compliance for the Beauty Industry
- Register under GST if turnover exceeds the applicable registration threshold
- Charge the applicable GST rate on products
- Charge 5% GST without ITC on beauty and physical well-being services
- Use appropriate HSN and SAC codes
- File monthly or quarterly GST returns, as applicable
- Maintain accurate billing and inventory records
Input Tax Credit (ITC) for Beauty Businesses
Businesses supplying beauty and physical well-being services at 5% GST cannot claim ITC on goods or services used exclusively for providing those services.
Where inputs or services are used partly for such services and partly for other taxable supplies, proportionate ITC reversal may be required as per GST rules.
GST Impact on Beauty and Cosmetics Sector
| Before GST | Current GST |
|---|---|
| VAT + Excise duties (12%-26%) | Most cosmetic products attract 18% GST, while specified products such as shampoos attract 5% GST |
| Limited input credit | ITC is available on eligible cosmetic product supplies, while beauty and physical well-being services attract 5% GST without ITC |
| Multi-tax complexity | Simplified national tax system |
Before GST
Current GST
Before GST
Current GST
Before GST
Current GST
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.
