BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
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.
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% |
Get a Free Trial – Best Accounting Software For Small Business
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.
This unified slab simplifies GST compliance for manufacturers and retailers.
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.
Liquid soap includes hand wash, body wash, and liquid detergents. The gst rate on liquid soap is also 18%, regardless of brand or packaging.
Businesses can claim Input Tax Credit on:
This helps reduce the overall tax burden and improves pricing competitiveness.
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.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.