Liquid soap HSN Code

Understanding the Liquid Soap HSN Code

Liquid soaps are a household staple, from hand washes to body cleansers. For businesses involved in their manufacturing, distribution, or retail in India, understanding the correct Harmonized System of Nomenclature (HSN) code is crucial for accurate Goods and Services Tax (GST) compliance. The HSN code system, an internationally standardized method, ensures uniformity in the classification and taxation of goods.

Most liquid soaps fall under HSN Chapter 34: Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, dental waxes” and dental preparations with a basis o. This chapter broadly covers products designed for cleaning and washing.

Specifically, “Organic Surface-Active Products And Preparations For Washing The Skin, In The Form Of Liquid Or Cream And Put Up For Retail Sale, Whether Or Not Containing Soap” are covered under HSN 3401. This main heading has several sub-codes, such as 34013019 and 34013090, which specifically address liquid or cream forms put up for retail sale. The general GST rate for these liquid soaps, including hand washes and body washes, is 18%.

It’s important to note that while the majority of liquid soaps fall under HSN 3401 with an 18% GST, certain specialized products might have different classifications. For instance, medicated liquid soaps, if they meet specific criteria under the Drug and Cosmetics Act, could be classified as pharmaceutical products and might attract a lower GST rate of 12%. However, for standard liquid hand wash and body wash products, HSN 3401 and an 18% GST rate are the norm.