New GST on Skincare Products: Rate, Branding & Retail Pricing
- Skincare products in India are taxed under GST at a standard rate of 18%, except for some medicated creams which may have a 5% rate.
- The GST rate does not change based on whether the skincare product is branded or unbranded.
- Retail prices include GST, so a product priced at ₹100 before tax would cost ₹118 after GST.
- Businesses can claim Input Tax Credit (ITC) on raw materials, marketing, and other expenses related to skincare products.
- Proper classification under HSN code 3304 and ITC planning can help businesses manage costs and compliance.
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 in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for common Skincare Products (no compensation cess).
| Skincare Product | GST Rate |
|---|---|
| Moisturizers, Face Creams | 18% |
| Sunscreen Lotions | 18% |
| Face Wash, Cleansers | 18% |
| Anti-Aging Creams | 18% |
| Fairness Creams, Serums | 18% |
| Body Lotions, Hand Creams | 18% |
| Medicated Creams (Prescription-based) | 5% (in some cases) |
Skincare Product
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Old GST Rate on Common Skincare Products
(Old GST Rates – Applicable Until 21st September)
| Skincare Product | GST Rate |
|---|---|
| Moisturizers, Face Creams | 18% |
| Sunscreen Lotions | 18% |
| Face Wash, Cleansers | 18% |
| Anti-Aging Creams | 18% |
| Fairness Creams, Serums | 18% |
| Body Lotions, Hand Creams | 18% |
| Medicated Creams (Prescription-based) | 12% (in some cases) |
Skincare Product
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Explore more GST rate lists for various product categories.
HSN Code for Skincare Products
| HSN Code | Description | GST Rate |
|---|---|---|
| 3304 | Beauty/makeup prep, skincare items | 18% |
HSN Code
Description
GST Rate
Refer to HSN Code list for better classification and billing accuracy.
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 uniformly levied at 18%, making it crucial for both consumers and businesses to understand its effect on pricing and margins. With proper classification under HSN 3304 and smart ITC planning, sellers can stay compliant while controlling costs. Whether you’re a beauty brand, retailer, or regular buyer, knowing the GST implications ensures transparency in every purchase.
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