--- title: "New GST on Soap 2026: 5% / 18% Rate on Soap Bars, Detergent" description: "New GST rate on soap in 2026 is 5% on soap bars and 18% on liquid soap and detergents. Get GST-ready with Busy and apply the correct rate on every invoice." canonical: "https://busy.in/gst-rates/soap/" author: "Apurva Maheshwari" published: "2025-05-19T04:55:50.000Z" category: "GST Rates" --- - The GST rate on **toilet/bathing soaps in bar form** has been reduced to **5%**, while liquid hand wash and body wash remain under applicable higher rates. - Laundry soaps and detergent products are taxed based on their classification and composition, with detergent powders and liquid detergents generally attracting **18% GST**. - GST rates for soaps and detergents depend on the product type and applicable HSN classification. - Businesses can claim eligible Input Tax Credit on production materials and packaging used for taxable supplies. - Correct HSN codes and regular GST filings are important for compliance in the soap industry. # 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 revised GST rates applicable from **22 September 2025** are provided below for soap and detergent products (no compensation cess). ## GST on Soap and Detergents | Soap Type | HSN Code | GST Rate (After 22nd Sept 2025) | GST Rate (Before 22nd Sept 2025) | | --- | --- | --- | --- | | Bathing soaps (toilet soap bars) | 3401 | **5%** | **18%** | | Liquid hand wash or body wash | 3401 | **18%** | **18%** | | Laundry soaps | 3401 | **18%** | **18%** | | Detergent powder | 3402 | **18%** | **18%** | | Liquid detergent or fabric softener | 3402 | **18%** | **18%** | **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## GST on Soap and Detergent Both personal hygiene soaps and detergents used for cleaning clothes fall under Chapter 34 of the HSN classification. Under the revised structure, effective 22 September 2025, GST rates depend on the type of product. - **Bathing/toilet soaps in bar form attract 5% GST**, while laundry soaps, liquid hand wash, body wash, detergent powders, and liquid detergents are taxed according to their applicable HSN classification, generally at **18% GST**. - Medicated soaps and moisturizing soaps are generally classified under HSN 3401 and taxed according to their category, while detergent cakes, washing bars, and powders fall under either 3401 or 3402 depending on composition. ## **Soap Powder GST Rate** Soap powder and detergent powder fall under HSN Code 3402. The GST rate applicable to detergent powders, surfactants, and washing agents is 18%, whether sold in small retail packs, jars, or bulk quantities. Popular detergent brands such as Surf Excel, Tide, and Ariel powder fall within this category and attract 18% GST. Live Demo Available Today ## Track Soap Batch Expiry Across Distributor Stock Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## **GST Rate on Liquid Soap** Liquid soap products such as **hand wash and body wash** are taxed at **18% GST**. Other liquid cleaning products, such as **liquid detergents and fabric softeners**, also attract **18% GST** under their applicable HSN classification. The GST rate applies based on product classification and is not affected by brand, packaging size, or market positioning. ![GST rates on soap and detergents](https://busy-client.busy.in/media/6.png) ## **Input Tax Credit for Soap Manufacturers and Traders** GST-registered manufacturers and traders can claim Input Tax Credit on business related purchases. This includes raw materials such as chemicals and oils used in production, bottles, wrappers, and labels used for packaging, packing machinery, transportation and warehousing services, as well as marketing and advertising expenses. Claiming ITC reduces the overall tax burden and improves market competitiveness. ## GST Compliance for Soap Businesses Soap businesses must ensure the correct use of HSN codes, with HSN 3401 applying to soaps and HSN 3402 to detergents and surface-active agents. GST should be charged at the applicable rate based on product classification. Businesses must file GST returns such as GSTR 1 and GSTR 3B within the prescribed timelines and maintain proper purchase, sales, and stock records to support Input Tax Credit claims and ensure smooth compliance. ## How to Calculate GST on Soap GST is calculated on the taxable value mentioned on the invoice. ### **Formula to calculate GST** GST Amount = Taxable Value × GST Rate Total Invoice Value = Taxable Value + GST Amount ### **Example 1: Bathing Soap (5% GST)** If bar soaps are purchased for ₹2,000: GST = 5% of ₹2,000 GST = ₹100 Total Invoice Value = ₹2,100 ### **Example 2: Liquid Hand Wash (18% GST)** If liquid hand wash products are purchased for ₹3,000: GST = 18% of ₹3,000 GST = ₹540 Total Invoice Value = ₹3,540 ### **Example 3: Detergent Powder (18% GST)** If detergent powder worth ₹5,000 is purchased: GST = 18% of ₹5,000 GST = ₹900 Total Invoice Value = ₹5,900 ## **Conclusion** Understanding the **GST on soap** helps businesses in pricing and compliance while giving consumers clarity on what they pay. Soap and detergent products are taxed based on their **type and applicable HSN classification**. While bar soaps and laundry soaps attract **5% GST**, liquid cleaning products and detergents generally attract **18% GST**. ## About the author **Apurva Maheshwari** 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 ### What is the GST on soap in India? The GST on **bathing and laundry soap is 5%**. Other products such as liquid hand wash, body wash, and detergents attract GST based on their applicable HSN classification. ### What is the GST on soap and detergent for household use? GST on soap and detergent depends on the product type. **Bathing/toilet soaps in bar form attract 5% GST**, while laundry soaps, liquid hand wash, body wash, and detergent products are taxed according to their applicable HSN classification, generally at **18% GST**. ### What is the soap powder GST rate? Detergent powders and washing agents attract 18% GST. ### Is liquid hand wash taxed differently? Yes. **Liquid hand wash attracts 18% GST**, while bar soaps are taxed at **5% GST** under the applicable classification. ### Can manufacturers claim ITC on raw materials and packaging? 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