AAR: Shaving Foam Not Same as Shaving Cream; 5% GST Limited to Cream, Lotion & Aftershave

McNROE Consumer Products Private Limited, engaged in the FMCG and personal hygiene segment and owner of brands such as Wild Stone, Secret Temptation, and Heaven’s Garden, sought an advance ruling before the Authority for Advance Ruling on the classification and applicable GST rate for shaving cream and shaving foam.

The applicant submitted that both products are pre-shave cosmetic preparations used to soften facial hair and facilitate smooth shaving. While shaving cream is a semi-solid emulsion requiring manual lathering, shaving foam is dispensed in pre-lathered aerosol form. It was contended that both products share similar ingredients, identical functional use and essential character, differing only in presentation.

After Notification No. 09/2025 – Central Tax (Rate) dated 17 September 2025, GST on goods under Heading 3307 was bifurcated, granting 5% GST to shaving cream, shaving lotion and aftershave lotion, while other products under the heading remained taxable at 18%. The applicant argued that shaving foam should also qualify for the concessional 5% rate.

Main Issue: Whether shaving foam and shaving cream are the same product and classifiable under HSN 33071010; and whether 5% GST applies to all products falling under HSN 330710 pursuant to Notification No. 09/2025 – Central Tax (Rate).

AAR’s Decision: The Authority examined the composition, commercial identity, application method and tariff structure under the Customs Tariff Act, 1975. It observed that although both products serve the same purpose of softening facial hair and enabling smooth shaving, they differ in physical form, composition, packaging and market identity. In common parlance and commercial practice, shaving cream and shaving foam are treated as distinct products and are not interchangeable.

The Authority held that both products fall under Heading 3307. However, shaving cream is specifically covered under tariff item 33071010, whereas shaving foam falls under the residual entry 33071090 (“Other” pre-shave, shaving or after-shave preparations).

The Authority analysed Schedule I and Schedule II of Notification No. 01/2017 – Central Tax (Rate), as amended by Notification No. 09/2025 – Central Tax (Rate). It noted that the concessional 5% rate under Serial No. 249 of Schedule I specifically applies to shaving cream, shaving lotion and aftershave lotion. All other goods under Heading 3307, including shaving foam, remain covered under Serial No. 64 of Schedule II and are taxable at 18% (9% CGST + 9% SGST). Thus, it ruled that shaving foam is not the same product as shaving cream and is not eligible for the 5% concessional rate.

To Read Full Judgment, Download PDF Given Below