Medicated Toilet Soap Attracts 18% GST: AAR

The applicant company, M/s East African India Overseas, manufactures and supplies Pharmaceutical Formulations, including Tablets, Capsules, Syrups, Toilet Soaps, Medicated Toilet Soaps, etc. The company was classifying toilet soaps and medicated toilet soaps under HSN 3401 of the Customs Tariff Act, 1975 and was paying a duty at 18% under Notification No. 1/2017-Central Tax (Rate).

However, the Notification No. 09/2025-Central Tax (Rate) revised the tax rates for regular toilet soaps. The applicant mentioned that this notification did not clarify the GST rate for medicated toilet soaps.

The applicant company filed an application under section 97(1) of the CGST Act and Uttarakhand State Goods and Services Tax Act, 2017, before the Uttarakhand Authority of Advance Ruling (AAR), seeking an advance ruling on the following issues:

“a. What is the correct rate of GST applicable to Medicated Toilet Soap (HSN 3401) w.e.f. 22.09.2025 ?;

b. Whether Medicated Toilet Soap, being classifiable under HSN 3401, is covered under revised 5% rate applicable to Toilet Soap, or whether it continues under the general 18% slab?”

The Uttarakhand AAR clarified that the amended rates in Schedule I apply only to the Toilet Soaps that fall under Tariff Item 34011190.

The authority ruled that the Medicated Toilet Soap falls under the tariff item 34011110 and is covered under Serial Number 66 of Schedule II to Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025. The Medicated Toilet Soap is taxable at 18% GST (9% CGST and 9% SGST).