Lotion HSN Code

Understanding the Lotion HSN Code: A Clear Path to GST Compliance

Lotions are an everyday essential, used for moisturizing, sun protection, and various skin care routines. For businesses involved in manufacturing, distributing, or selling lotions in India, understanding the correct HSN (Harmonized System of Nomenclature) code and its corresponding GST (Goods and Services Tax) rate is paramount for accurate billing and tax compliance.

The HSN for Lotion

The HSN system classifies goods for international trade and taxation. When it comes to lotions, they primarily fall under Chapter 33 of the HSN, which is dedicated to “Essential oils and resinoids, perfumery, cosmetic or toilet preparations.”

More specifically, most common moisturizing lotions and skin care lotions (that are not medicated) are classified under:

• HSN Code 33049930: This code specifically describes “Beauty Or Make-Up Preparations And Preparations For The Care Of The Skin (Other Than Medicaments), Including Sunscreen Or Suntan Preparations; Manicure Or Pedicure Preparations Other: Other Moisturising Lotion.” This is the most direct and common HSN for typical lotions.

It’s crucial to note the phrase “(Other Than Medicaments)” in the description. This distinction is vital because medicated lotions (those with therapeutic or prophylactic properties for treating specific skin conditions) would typically fall under Chapter 30, “Pharmaceutical products,” and could have different HSN codes and GST rates.

Understanding the GST on Lotions

For lotions falling under HSN 33049930, the prevailing GST rate is 18%. This rate has been in effect since November 15, 2017. Most cosmetic and personal care products, considered non-essential items, attract this standard rate.

Businesses must ensure that they correctly apply this HSN code and the 18% GST rate on all their invoices and returns to maintain compliance and avoid any discrepancies during audits.