2026-VIL-59-AAR
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SGST Advance Ruling Authority

GST – Chhattisgarh AAR – Classification of Soap - Classification of soap as "toilet soap" or "laundry soap" - Applicant's soap has a Total Fatty Matter (TFM) content exceeding 60%, aligning with the definition of "toilet soap" as per BIS standards. However, the applicant's soap is used for both personal hygiene (bathing) and laundry purposes by consumers - Whether the applicant's soap, given its composition (TFM>60%) and dual-use nature (bathing and laundry), should be classified under HSN 3401 19 41 ("Toilet soap") or HSN 3401 19 42 ("Laundry soap") and the applicable GST rate thereon – HELD - Although it is not within the jurisdiction of this authority to pronounce any decision as regards the mandatory requirement for displaying the crucial information on soap labels regarding the type of soap being manufactured and supplied, the contention of the applicant that the wrapping/packaging of the soap does not contain any marking or declaration as to whether the product is “toilet soap” or ‘‘laundry soap”, appears not to be in compliance with the procedures as mandated under the law in vogue - It is the goods that are manufactured and subsequently declared and supplied by the applicant, that attains significance leading to the determination the correct classification of goods and its effective rate of tax. The toilet soaps for washing the body/skin aptly falls under ITC(HS)Code 3401 11 90, whereas laundry soaps for washing purpose (other than toilet soap), merits classification under 3401 19 42 - Toilet soaps (other than industrial soaps) in the form of bars, cakes, moulded pieces or shapes, manufactured and sold/supplied by the applicant for washing of skin, classifiable under Heading no. 3401, attract tax at 5% GST. Conversely, Laundry soaps in the form of cakes, moulded pieces or shapes, whether or not containing soap [other than toilet soap in the form of bars, cakes, moulded pieces or shapes], manufactured and sold/supplied by the applicant for washing purposes, classifiable under Heading no. 3401, attract tax at 18% GST – Ordered accordingly
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