After GST 2.0 (effective 22 September 2025), everyday toiletries — hair oil, shampoo, toothpaste, toilet soap, talcum powder and shaving cream — are taxed at 5%. All other cosmetics — lipstick and colour make-up, skincare creams, sunscreen, perfumes and deodorants — are taxed at 18%. The old 28% slab on make-up has been removed. Beauty parlour and salon services are 18%.
GST Rate for Cosmetics — Decision Table
The GST rate for every common cosmetic, personal-care and beauty product after the GST 2.0 two-slab rationalisation, with the HSN code under Chapter 33.
| Product | GST Rate | HSN | Notes |
|---|---|---|---|
| Hair oil (amla, coconut hair oil, etc.) | 5% | 3305 | Cut from 18% under GST 2.0 |
| Shampoo & conditioner | 5% | 3305 | Cut from 18% |
| Toothpaste, tooth powder | 5% | 3306 | Cut from 12% |
| Toilet soap (bathing bar) | 5% | 3401 | Cut from 12% |
| Shaving cream, after-shave | 5% | 3307 | Cut from 18% |
| Talcum / face powder | 5% | 3304 | Cut from 18% |
| Face wash, moisturiser, serum | 18% | 3304 | Skin-care preparations |
| Fairness / sunscreen cream | 18% | 3304 | SPF & skin-lightening creams |
| Lipstick / lip colour | 18% | 3304 | Was 28% — now 18% |
| Mascara, eyeliner, eye shadow | 18% | 3304 | Was 28% — now 18% |
| Nail polish & remover | 18% | 3304 | Was 28% — now 18% |
| Foundation, BB/CC cream, blush | 18% | 3304 | Was 28% — now 18% |
| Hair dye / hair colour | 18% | 3305 | Was 28% — now 18% |
| Perfume, deodorant, eau de toilette | 18% | 3303/3307 | Perfumery preparations |
| Beauty parlour / salon service | 18% | 9997 | Haircut, facial, waxing, make-up |
Rates reflect the GST 2.0 two-slab structure effective 22 September 2025. Confirm the HSN on the official GST portal before invoicing.
Which GST Rate Applies to Your Product?
GST 2.0 draws one line: daily-use hygiene and grooming staples sit at 5%, while beauty and colour cosmetics, skincare and perfumery sit at 18%. The earlier 12% and 28% cosmetic slabs no longer exist.
Everyday toiletries
- Hair oil, shampoo & conditioner
- Toothpaste, tooth powder
- Toilet soap & bathing bars
- Shaving cream & after-shave
- Talcum & face powder
- Mass-use, daily-necessity items
Beauty & colour cosmetics
- Lipstick, mascara, nail polish, foundation
- Face wash, moisturiser, sunscreen, serum
- Fairness & anti-ageing creams
- Perfume, deodorant, eau de toilette
- Hair dye & hair colour
- Salon & beauty parlour services
Before 22 September 2025 colour cosmetics such as lipstick, nail polish, mascara and hair dye attracted 28% GST. GST 2.0 abolished the 28% slab; these products now attract 18%. The 40% demerit rate that replaced 28% applies only to sin and luxury goods — it does not apply to ordinary cosmetics.
Not sure which slab your product falls in?
Get My GST Rate →GST on Make-up, Lipstick & Nail Polish
Beauty and make-up preparations — lipstick, foundation, mascara, eye shadow, blush and nail polish — are classified under HSN 3304. Under GST 2.0 they attract 18% GST, down from the 28% that applied until 22 September 2025. The rate is the same for a budget product or a luxury brand.
- Make-up, skincare and perfumery (HSN 3303/3304/3307) are taxed at 18%.
- Daily toiletries (HSN 3305/3306/3401) such as shampoo, hair oil, toothpaste and toilet soap are taxed at 5%.
- Registered retailers claim input tax credit on stock and report supplies in their GST returns.
How GST Adds Up on Cosmetics
18% Lipstick (make-up)
5% Shampoo (toiletry)
On the same ₹400 lipstick, GST 2.0 lowered the tax from ₹112 (at 28%) to ₹72 (at 18%) — a direct benefit passed on to consumers. Use our GST calculator to work out any base price and rate.
A wrong HSN can push a 5% toiletry into the 18% cosmetic slab (or vice-versa) and trigger short-payment notices. Medicated products (e.g. a prescription dermatological cream) may follow pharma HSN rates instead of the cosmetic rate — classify by the product's primary use.
Selling cosmetics online or in retail? Get your HSN and ITC set up right.
Get Cosmetics GST Advice →GST on Beauty Parlour & Salon Services
Beauty parlours, hair salons, spas and nail studios charge 18% GST on their service fee (SAC 9997). This covers haircut and styling, hair colour, facials, waxing, threading, manicure, pedicure and bridal make-up. See our dedicated guide on GST on beauty parlour services.
Salon can claim ITC if
- Registered under regular GST (not composition)
- GST paid on products, equipment & rent
- Valid tax invoices on inward supplies
- Services are taxable output at 18%
ITC is restricted if
- You opted for the composition scheme
- Turnover is below the ₹20 lakh threshold
- Inputs are personal, not for the business
- Invoices are missing or not in GSTR-2B
A salon must register once aggregate turnover crosses ₹20 lakh (₹10 lakh in special-category states). Small salons may consider the composition scheme at a lower flat rate without ITC.
Running a salon or beauty business? Get registration and monthly filing sorted.
Talk to a GST Expert →Cosmetics GST Compliance Checklist
Whether you manufacture, distribute, retail or run a salon, here is the compliance picture for a cosmetics or beauty business under GST 2.0:
- GST registration (GSTIN)
- Correct HSN & rate (5% vs 18%)
- Tax invoice with HSN & rate
- ITC on stock & inputs
- GSTR-1 (outward supplies)
- GSTR-3B (monthly/quarterly)
- E-invoicing applicability
- E-way bill for stock movement
- E-commerce (TCS) reconciliation
- GSTR-9 annual return
- Price-revision to pass on rate cut
- Books & records upkeep
The GST 2.0 cut is only a benefit if it flows through to your prices. Anti-profiteering expectations mean retailers should re-sticker MRPs and update billing masters so the 5%/18% rates show correctly on every invoice — mismatched rates are the most common cause of GST notices for cosmetics sellers.
Frequently Asked Questions
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