New GST on Soap: Bathing and Laundry Categories
Soap is a staple in every Indian home—whether for personal hygiene or laundry. But under GST, not all soaps are taxed the same. The gst on soap depends on its type, packaging, and use. In this blog, we explain how different soaps—bar, liquid, or powder—are classified and taxed.
New GST Rate on Soap in India
The Government of India is updating GST rates effective after 22 Sep 2025. Below are the expected new GST rates for Soap (no compensation cess).
New GST Rate on Soap
The GST rate on soap varies by form and purpose. The majority of soaps fall under Chapter 34 of the HSN Code , which deals with soaps and surface-active agents.
| Soap Type | HSN Code | New GST Rate |
|---|---|---|
| Bathing soaps (bar soaps) | 3401 | 5% |
| Liquid hand wash / body wash | 3401 | 18% |
| Laundry soaps | 3401 | 5% |
| Detergent powder | 3402 | 18% |
| Liquid detergent / softener | 3402 | 18% |
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Old GST Rate on Soap
(Old GST Rates – Applicable Until 21st September)
The GST rate on soap varies by form and purpose. The majority of soaps fall under Chapter 34 of the HSN Code , which deals with soaps and surface-active agents.
| Soap Type | HSN Code | GST Rate |
|---|---|---|
| Bathing soaps (bar soaps) | 3401 | 18% |
| Liquid hand wash / body wash | 3401 | 18% |
| Laundry soaps | 3401 | 18% |
| Detergent powder | 3402 | 18% |
| Liquid detergent / softener | 3402 | 18% |
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GST on Soap and Detergent
Both personal hygiene soaps and detergents used for cleaning clothes fall under the same GST bracket. The gst on soap and detergent is 18%, making no distinction between luxury and mass-market brands.
- Medicated soaps
- Moisturizing soaps
- Detergent cakes
- Washing bars and powders
This unified slab simplifies GST compliance for manufacturers and retailers.
Soap Powder GST Rate
The soap powder gst rate is 18% under HSN Code 3402. This includes all detergent powders, surfactants, and washing agents—whether in packets, jars, or bulk supply.
- Surf Excel
- Tide
- Ariel powder
GST Rate on Liquid Soap
Liquid soap includes hand wash, body wash, and liquid detergents. The gst rate on liquid soap is also 18%, regardless of brand or packaging.
Input Tax Credit for Soap Manufacturers and Traders
Businesses can claim Input Tax Credit on:
- Chemicals and oils used in production
- Bottles, wrappers, and labels
- Packing machinery
- Transportation and warehousing
- Marketing and advertising
This helps reduce the overall tax burden and improves pricing competitiveness.
GST Compliance for Soap Businesses
- Use correct HSN codes (3401 for soap, 3402 for detergent)
- Charge 18% GST on all invoices
- File GST returns (GSTR-1 and GSTR-3B) regularly
- Maintain purchase and stock records for ITC
Conclusion
Understanding the gst on soap helps businesses in pricing and compliance while giving consumers clarity on what they pay. Despite being an essential item, all soaps and detergents are uniformly taxed at 18% under GST.
I am a Chartered Accountant with 5 years of experience specializing in GST, income tax, and HSN code classification. I help businesses with GST compliance, tax planning, and financial advisory, ensuring they meet regulatory requirements while optimizing their tax strategies. I aim to simplify GST filings, income tax laws, and HSN code classifications, helping professionals and business owners stay informed and compliant.
Frequently Asked Questions
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What is the GST on soap in India?The GST on bathing and laundry soap is 18%.
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What is the GST on soap and detergent for household use?Whether it's for personal hygiene or laundry, all are taxed at 18%.
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What is the soap powder GST rate?Detergent powders and washing agents attract 18% GST.
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Is liquid hand wash taxed differently?No. The GST rate on liquid soap is also 18%, same as bar soap.
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Can manufacturers claim ITC on raw materials and packaging?Yes, as long as they are registered under GST and supply taxable products.