GST Rate and HSN Code for Wet Wipes and Towels
Uttarakhand AAR ruled wet wipes and cleansing towels attract 18% GST under HSN codes 3305 and 3307 based on packaging labels.
- Ruling
- Ruling No. 05/2018-19 dated 20.07.2018
- Dated
- 20 Jul 2018
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Company asked for HSN code and GST rate for wet wipes and towels
- Wet baby wipes face wipes and body towels fall under HSN 3307
- Shampoo towels for hair fall under HSN 3305
- All these wet wipes and towels attract 18% GST
In short
Ginni Filaments Limited asked the Uttarakhand Authority for Advance Ruling about the correct Harmonised System of Nomenclature (HSN) code and Goods and Services Tax (GST) rate for non-woven wet wipes and towels. The products included wet baby wipes, wet face wipes, bed and bath towels, and shampoo towels treated with cleansing lotions. The company wanted to clear up confusion caused by overlapping entries in different tariff chapters.
What has changed
How it worked before
Before this ruling, businesses were uncertain whether wet wipes fell under textiles, paper products, soaps, or cosmetics. Many suppliers classified wet wipes under cheaper tax brackets in Chapters 34, 48, or 56 depending on the base fabric.
What has changed
The authority ruled that wet baby wipes, face wipes, and bed and bath towels fall under HSN code 3307 because they are non-woven fabrics treated with cosmetics for skin cleansing. Shampoo towels specifically labeled for hair cleansing fall under HSN code 3305 as hair preparations. Both categories attract 18% GST. This means product labels and intended uses decide the tax category.
Who this affects
Manufacturers and trading businesses in India that make or sell wet wipes, cleansing tissues, and lotion-treated disposable towels.
An example
A business manufactures non-woven wipes treated with lotion specifically labeled for hair and scalp cleaning without water. The business wants to know if these count as simple cloth wipes or hair care products. Based on this ruling's reasoning, because the label advertises hair cleaning, the wipes fall under HSN 3305 at 18% GST.
What you should do
Businesses selling wet wipes should check their product labels and HSN classifications against this logic. Remember that an advance ruling legally binds only the company that applied and its local tax officer. Other businesses cannot automatically apply this ruling to their own tax filings without seeking separate advice or rulings.
If you do nothing
If you incorrectly classify wet wipes under lower tax rates like textiles or paper, tax officers may reclassify them during an audit. This could result in recovery of unpaid tax along with interest and penalties. Relying on someone else's ruling will not protect your business from legal action.
The terms explained
- Harmonised System of Nomenclature (HSN)
- A standardized numerical code used globally and under GST to classify goods for tax purposes.
- Advance Ruling
- An official written decision given by tax authorities to a business on specific tax questions before undertaking a transaction.
- Chapter Note
- Official explanatory instructions at the beginning of tariff chapters that define how items in that chapter must be classified.
The ruling in detail
Authority for Advance Ruling
M/s. Ginni Filament Limited
Ruling No. 05/2018-19 dated 20.07.2018 · Uttarakhand
Questions before the authority
- Classification and GST rate of Wet Baby Wipes under the GST Schedule.
- Classification and GST rate of Wet Face Wipes under the GST Schedule.
- Classification and GST rate of Bed & Bath Towels under the GST Schedule.
- Classification and GST rate of Shampoo Towels under the GST Schedule.
Facts
The applicant manufactures and supplies non-woven spun lace fabric wipes and towels impregnated with various chemical lotions and cleansing agents. These products include wet baby wipes, wet face wipes, bed & bath towels, and shampoo towels used for body and hair cleansing without water. The applicant sought clarification on HSN classification and GST rates due to overlapping entries in the GST Tariff Schedule across Chapters 33, 34, 48, and 56.
Ruling
| Question | What the authority ruled |
|---|---|
| Wet Baby Wipes | HSN 3307, 18% GST (09% CGST + 09% SGST) Governed by CBIC clarification F.No. 332/2/2017-TRU dated 22.12.2017 |
| Wet Face Wipes | HSN 3307, 18% GST (09% CGST + 09% SGST) Impregnated non-woven fabric used for skin cleaning |
| Bed & Bath Towels | HSN 3307, 18% GST (09% CGST + 09% SGST) Primary function is body cleansing and skin moisturizing |
| Shampoo Towels | HSN 3305, 18% GST (09% CGST + 09% SGST) Preparation specifically meant and labeled for application on hair |
The Authority held that Wet Baby Wipes, Wet Face Wipes, and Bed & Bath Towels are classified under **HSN Code 3307** attracting GST at the rate of **18%** (09% CGST + 09% SGST). Shampoo Towels, being specifically manufactured and labeled for hair cleansing, are classified under **HSN Code 3305** attracting GST at the rate of **18%** (09% CGST + 09% SGST).
Reasoning
The AAR relied on Chapter Note 4 to Chapter 33, which covers non-wovens impregnated, coated, or covered with perfume or cosmetics under heading 3307. CBIC Circular F.No. 332/2/2017-TRU dated 22.12.2017 clarified that baby wipes impregnated with cosmetics fall under HSN 3307 at 18% GST. Bed & Bath Towels perform skin cleansing and moisturizing functions, bringing them under HSN 3307 rather than Chapters 34, 48, or 56. Applying the Supreme Court ruling in Commissioner of Central Excise v. Madhan Agro Industries (I) Pvt. Ltd., Shampoo Towels are classified under HSN 3305 as preparations for use on hair because the packaging specifically declares their purpose as hair cleaning and shampooing.
Provisions relied on
- Section 97(2)(a) of CGST/SGST Act, 2017
- Section 97(2)(e) of CGST/SGST Act, 2017
- Chapter 33 Note 4 of GST Tariff
- HSN Code 3305
- HSN Code 3307
- Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017
- Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017
- CBIC Circular F.No. 332/2/2017-TRU dated 22.12.2017
For the practitioner
This ruling establishes that **impregnated non-woven wipes and towels** are classified based on their targeted application area and essential character. Products designed for skin cleansing fall under **HSN 3307**, whereas those designed specifically for hair fall under **HSN 3305**. Packaging label declarations regarding usage play a decisive role in determining classification.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/uttrakhand_05-2018-19_dtd_20-07-18.pdf
Legibility of the scan, as read: high.
Prepared 20-10-2026.
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