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Key Highlights
- Beauty and skincare products fall under HSN 3304 and attract an 18% GST rate, making them costlier for consumers compared to essential goods.
- Input Tax Credit (ITC) can be claimed by businesses for beauty and make-up products used for resale, manufacturing, or trade, helping to offset tax liability.
- Correct GST classification and invoicing are essential to avoid tax penalties, compliance issues, and incorrect ITC claims.
- E-commerce sellers and retailers must register for GST, even if their turnover is below the standard threshold, to comply with tax regulations.
- Luxury beauty products like perfumes and deodorants are taxed at a higher 28% GST rate, increasing their overall retail price.
The beauty and skincare industry is a significant segment of the consumer goods market, covering products like make-up, creams, lotions, and cosmetics. Under India's Goods and Services Tax (GST) framework, these products are classified under Chapter 33 of the Harmonized System of Nomenclature (HSN).Most beauty and personal care products attract an 18% GST rate, though some luxury or high-end cosmetic items may be taxed at a higher rate. Businesses in this sector, including manufacturers, wholesalers, and retailers, must ensure compliance with GST regulations, proper invoicing, and Input Tax Credit (ITC) claims.This guide provides a detailed breakdown of the GST rates, HSN codes, and compliance requirements for beauty, make-up, and skincare products.
HSN Codes and GST Rates for Beauty & Skincare Products
Beauty and personal care products fall under Chapter 33 of the HSN classification system. The table below outlines the applicable GST rates for various categories:
| HSN Code | Description | Rate (%) | CESS (%) | Effective Date | Rate Revision |
| 3304 | 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 | 18 | 0 | 15/11/2017 | 18% has replaced 28% |
| 33041000 | 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 Lip Make-up Preparations | 18 | 0 | 15/11/2017 | 18% has replaced 28% |
| 33042000 | 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 Eye Make-up Preparations | 18 | 0 | 15/11/2017 | 18% has replaced 28% |
| 33043000 | 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 Manicure Or Pedicure Preparations | 18 | 0 | 15/11/2017 | 18% has replaced 28% |
| 330491 | Powders, Whether Or Not Compressed | 18 | 0 | 15/11/2017 | 18% has replaced 28% |
| 33049110 | 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: Powders, Whether Or Not Compressed: Face Powders | 18 | 0 | 15/11/2017 | 18% has replaced 28% |
| 33049120 | 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: Powders, Whether Or Not Compressed: Talcum Powders | 18 | 0 | 15/11/2017 | 18% has replaced 28% |
| 33049190 | 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: Powders, Whether Or Not Compressed: Other | 18 | 0 | 15/11/2017 | 18% has replaced 28% |
| 330499 | Other | 18 | 0 | 15/11/2017 | 18% has replaced 28% |
| 33049910 | 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: Face Creams | 18 | 0 | 15/11/2017 | 18% has replaced 28% |
| 33049920 | 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 Nail Polish Or Lacquers | 18 | 0 | 15/11/2017 | 18% has replaced 28% |
| 33049930 | 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 | 18 | 0 | 15/11/2017 | 18% has replaced 28% |
| 33049940 | 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 Sindur, Bindi, Kumkum | 18 | 0 | 15/11/2017 | 18% has replaced 28% |
| 33049950 | 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 Turmeric Preparations | 18 | 0 | 15/11/2017 | 18% has replaced 28% |
| 33049990 | 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 Other | 18 | 0 | 15/11/2017 | 18% has replaced 28% |
Why Do Beauty & Skincare Products Attract 18% GST?
Here are the main reasons why beauty and skincare products attract 18% GST: Luxury and Non-Essential Classification Cosmetics and skincare items are considered non-essential, unlike basic food or medical products, which attract lower tax rates. High Branding and Marketing Costs The industry relies heavily on branding, packaging, and advertising, factors that influence the higher tax slab. International Parity The 18% GST rate aligns with global taxation trends for cosmetics and skincare products.
GST Compliance for Beauty & Make-up Product Businesses
Businesses dealing in beauty and make-up products must comply with GST regulations to ensure smooth operations, avoid penalties, and take advantage of tax benefits. Below are the key compliance requirements: GST Registration
- Businesses with an annual turnover above ₹40 lakh (₹20 lakh for special category states) must register under GST.
- E-commerce sellers are required to register for GST, regardless of turnover.
- Failure to register when required may lead to penalties and legal action.
Tax Invoicing Requirements
FAQS - FREQUENTLY ASKED QUESTIONS
What is the GST rate on beauty and make-up products?
Beauty and make-up products fall under HSN 3304 and attract an 18% GST rate.
Are skincare products taxed at the same rate as cosmetics?
Yes, skincare products like creams, serums, and lotions are classified under HSN 3304 and are taxed at 18%.
Do herbal and ayurvedic beauty products have different GST rates?
No, herbal and ayurvedic beauty products are taxed at the same 18% rate as other cosmetics.
Is GST applicable to imported beauty products?
Yes, imported beauty and skincare products are subject to IGST (Integrated GST) at 18%, along with customs duties.
Is GST applicable to imported beauty products?
Yes, businesses can claim the Input Tax Credit (ITC) on beauty and skincare products used for resale or manufacturing.
Are salon and beauty parlour services subject to GST?
Yes, salon services attract 18% GST under HSN 9997.
Is GST applicable to handmade beauty products?
Handmade beauty products are also subject to 18% GST unless specifically exempted under government policies.
Do online beauty product sellers need to register for GST?
Yes, all e-commerce sellers must register for GST, regardless of their turnover.
Are perfumes and deodorants taxed at the same rate as make-up products?
No, perfumes and deodorants fall under HSN 3303 and are taxed at 28%.
What happens if a business misclassifies beauty products under the wrong HSN code?
Incorrect classification can lead to tax penalties, compliance issues, and rejection of ITC claims.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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