New GST on Skincare Products: Rate, Branding & Retail Pricing
- Most skincare products, including sunscreen, face wash, and cosmetic skincare preparations, generally attract 18% GST under the applicable HSN classification.
- The GST rate does not change only because a skincare product is branded or unbranded; classification and product category determine the applicable rate.
- Retail prices usually include GST. A product priced at ₹100 before GST would cost ₹118 after applying 18% GST.
- Businesses may claim eligible Input Tax Credit on GST paid for raw materials and other expenses used for taxable skincare supplies, subject to GST conditions.
- Correct HSN classification is important for applying the right GST rate on skincare products.
Skincare products are an essential part of daily personal care for many people. From moisturizers and face washes to sunscreens and anti-aging creams, these products are widely used and heavily marketed. But have you ever wondered how much tax you’re paying on them? This blog explores the GST on skincare products, how it affects pricing, the impact of branding, and what businesses need to know about compliance.
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Is GST Applicable on Skincare Products?
Yes, skincare products are taxable under GST as they fall under the category of cosmetics and personal care items. These products are not considered essential commodities, so they attract a higher tax slab under the GST regime.
The GST rate depends on the product’s type, ingredients, and whether it is branded or unbranded, though most standard skincare products are taxed at a flat rate.
New GST Rate on Skincare Products: HSN Code & Tax Rates
| Skincare Product | HSN Code | New GST Rate (After 22 Sep 2025) | Old GST Rate (Before 22 Sep 2025) |
|---|---|---|---|
| Moisturisers, face creams | 3304 | 18% | 18% |
| Sunscreen lotions | 3304 | 18% | 18% |
| Face wash, cleansers | 3304 | 18% | 18% |
| Anti-aging creams | 3304 | 18% | 18% |
| Fairness creams, serums | 3304 | 18% | 18% |
| Body lotions, hand creams | 3304 | 18% | 18% |
| Medicated creams (prescription-based) | Applicable HSN based on classification | Depends on classification | Depends on classification |
Skincare Product
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Skincare Product
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Skincare Product
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Skincare Product
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Skincare Product
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Skincare Product
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
Skincare Product
HSN Code
New GST Rate (After 22 Sep 2025)
Old GST Rate (Before 22 Sep 2025)
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Effect of Branding on GST Applicability
GST on skincare products does not change based on branding alone, unlike some food products . Both branded and unbranded skincare items attract the same 18% GST, as they fall under cosmetic or personal care classification.
However, branding does impact MRP pricing, marketing, and retailer margins. Many brands also include GST in their listed prices, so customers don’t always notice the tax separately.
Impact on Retail Pricing
- A ₹100 product pre-tax becomes ₹118 after GST.
- Prices can be higher for imported or luxury skincare lines, but the GST remains the same.
- Online stores like Nykaa, Amazon, and Flipkart must display GST-inclusive prices, and charge GST accordingly at checkout.
Input Tax Credit (ITC) for Sellers
Businesses involved in the manufacturing, distribution, or sale of skincare products can claim ITC on:
- Raw materials like chemicals, oils, packaging
- Advertising and marketing expenses
- Transportation and warehousing
- Retail infrastructure
Check Input Tax Credit eligibility and ensure invoice compliance to benefit from ITC.
Conclusion
The GST on skincare products is generally 18% for cosmetic and personal care products covered under applicable HSN classifications. Correct product classification and eligible ITC planning help businesses maintain compliance while managing costs. Whether you are a skincare brand, retailer, or consumer, understanding GST treatment helps ensure transparent pricing.
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