New GST on Sanitary Pads in India: Current Tax Status
- Sanitary pads in India were originally taxed at 12% under GST, like luxury items, which led to public outcry.
- In July 2018, the GST on sanitary pads was removed, making them completely exempt from tax to improve affordability.
- Although consumers benefit from a 0% GST rate, manufacturers cannot claim input tax credit on raw materials, affecting their costs.
- Retailers now sell sanitary pads without adding GST, benefiting consumers with lower prices.
- Raw materials for sanitary pads still incur GST, typically between 12% and 18%, impacting manufacturers' profit margins.
Sanitary pads are a basic necessity for women. But for a long time, they were taxed just like luxury goods under GST. After much public debate and demand, the government revised its stance. In this blog, we explain the current gst on sanitary pads, how it changed, and what it means for consumers and businesses.
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New GST Rate on Sanitary Pads
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for common Sanitary Pads (no compensation cess).
| Before July 2018 | After July 2018 |
|---|---|
| 12% GST on sanitary pads | 0% GST (completely exempt) |
| Input Tax Credit allowed | No Input Tax Credit |
| Higher retail price | Reduced cost to end user |
Before July 2018
After July 2018
Before July 2018
After July 2018
Before July 2018
After July 2018
Was GST Ever Applied to Sanitary Pads?
Yes. When the Goods and Services Tax (GST) was first implemented in July 2017, sanitary pads were taxed at 12%. This move was criticized heavily by health activists, women’s groups, and the general public, as it treated a basic hygiene product as a taxable item.
What Is the GST Rate on Sanitary Pads Now?
Currently, the sanitary pads GST rate is 0%.
This change was announced in July 2018, when the GST Council decided to exempt sanitary pads from GST altogether. This was done to make menstrual hygiene products more affordable and accessible.
So if you’re buying or selling sanitary pads:
- No GST is charged
- No input tax credit (ITC) is allowed to manufacturers on raw materials
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What Does This Exemption Mean?
(Old GST Rates – Applicable Until 21st September)
| Before July 2018 | After July 2018 |
|---|---|
| 12% GST on sanitary pads | 0% GST (completely exempt) |
| Input Tax Credit allowed | No Input Tax Credit |
| Higher retail price | Reduced cost to end user |
Before July 2018
After July 2018
Before July 2018
After July 2018
Before July 2018
After July 2018
While the 0% GST is good news for consumers, manufacturers can no longer claim ITC on the materials (like plastic, gel sheets, and packaging), which still attract GST. This sometimes offsets the benefit of the exemption on the final pricing.
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Impact on Pricing and Businesses
- Consumers: Pay less or no GST at all on sanitary napkins, which helps affordability.
- Retailers: Sell sanitary pads without adding GST to the bill.
- Manufacturers: Pay tax on raw materials but cannot claim input credit, which may impact profit margins.
Conclusion
The exemption of GST on sanitary pads was a positive move for women’s health and affordability. While sanitary pads are now taxed at 0%, challenges remain for manufacturers due to the lack of Input Tax Credit . Still, for the end consumer, this change ensures easier access to a critical hygiene product.
