2026-VIL-112-AAR
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SGST Advance Ruling Authority

GST – West Bengal AAR - Classification of Laundry Soap in the form of bar, weighing less than 500 grams – Applicability of concessional tax rate - Whether the revised GST rate of 5 percent applicable to toilet soap under Schedule I of Notification No. 09/2025 – Central Tax (Rate) dated 17.09.2025 also applies to laundry soap, or whether laundry soap attracts the 18 percent rate under Schedule II – HELD - The toilet soap is primarily intended for cleansing the human body and is formulated with gentle and moisturizing ingredients, while laundry soap is specifically designed for cleaning clothes and fabrics - Dictionary definitions and BIS standards establish that toilet soap is formulated for gentle cleansing of the human body with specific ingredients providing moisturizing effects, while laundry soap is specifically designed for removing tough stains and dirt from fabrics with surfactants, enzymes, and builders - Despite a single common ingredient falling within a matching numeric range, the two products possess significant differences in chemical composition, with distinct requirements for ingredients such as unsaponified fatty matter, glycerol, and lather that distinguishes one from the other – The consumers, regardless of locality or economic position, distinguish toilet soap from laundry soap and use each for its specific purpose and the personal choice to use the same product for both purposes does not render the two products identical. The Customs Tariff Act specifically classifies toilet soap under sub-heading 340111 for toilet use and laundry soap under separate tariff items 34011919 and 34011942, thereby establishing them as distinct products under tariff classification - The laundry soap does not qualify as toilet soap and therefore does not attract the concessional 5 percent GST rate. The laundry soap weighing less than 500 grams falls under tariff item 34011942 and attracts 18% GST under Schedule II of the rate notification – Ordered accordingly
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