GST Rate and HSN Classification for Laundry Soap Bars
The Gujarat Authority for Advance Ruling confirmed that laundry soap bars are classified under HSN 34011942 and attract an 18% GST rate.
- Ruling
- GUJ/GAAR/R/2026/28 dated 04/08/2026
- Dated
- 04 Aug 2026
- 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
- Chehar Industry asked for the GST rate on their laundry soap bars.
- The authority classified these products under HSN code 34011942.
- Laundry soap bars are subject to an 18% GST rate.
- Definitions from non-tax laws do not apply to GST classification.
In short
Chehar Industry asked the Gujarat Authority for Advance Ruling (GAAR) to clarify the correct GST classification and tax rate for their laundry soap bars. The company wanted to know if these soaps should be taxed at a lower rate by comparing them to toilet soaps. The authority examined the product's chemical makeup and intended use to determine the correct tax category.
What has changed
How it worked before
Businesses often looked to older laws, such as the Medicinal and Toilet Preparations Act, to argue for specific tax classifications for their soap products.
What has changed
The authority ruled that laundry soap bars fall under HSN 34011942, which carries an 18% GST rate. This confirms that GST classification relies strictly on the Customs Tariff Act and GST notifications, rather than definitions found in unrelated statutes.
Who this affects
Manufacturers and traders of laundry soaps, detergent bars, and cleaning soaps.
An example
Imagine a business called 'CleanBar Co.' that makes laundry soap bars. They might wonder if they can use a lower tax rate by claiming their soap is a toilet soap. Based on this ruling, the authority would likely reject that claim and insist on the 18% rate for laundry soap. CleanBar Co. should classify their product under HSN 34011942 to avoid future tax disputes.
What you should do
This ruling only applies to the company that asked the question. If you sell similar products, do not assume this rate applies to you automatically. Consult with your tax advisor to confirm your specific HSN classification and tax liability based on your product's ingredients and use.
If you do nothing
If you apply a lower tax rate based on this ruling without confirming your specific product's classification, you risk a tax demand from your local officer. The tax department may charge you the difference in tax plus interest and penalties. Relying on a ruling meant for another business is not a valid legal defense during an audit.
The terms explained
- HSN code
- A standardized system of numbers used to classify goods for tax and customs purposes.
- Advance ruling
- A formal decision from tax authorities on how GST law applies to a specific business transaction.
- Schedule-II
- A list within the GST notification that specifies the goods subject to a particular tax rate.
The ruling in detail
Authority for Advance Ruling
M/s. Chehar Industry Private Limited
GUJ/GAAR/R/2026/28 dated 04/08/2026 · Gujarat
Questions before the authority
- What is the correct classification and applicable GST rate on Washing/Laundry Soap (in BAR or CAKE form) used for washing clothes or toilet purposes as per Notification No.09/2025-Central Tax (Rate) dated 17.09.2025 effective from 22.09.2025?
- Whether such Washing/Laundry Soap for clothes and crockeries falls under the same GST rate and classification as Toilet Soap or under a separate tariff heading?
- What are the applicable 8 digit HSN codes and Rate of GST for Washing Soap, Laundry Soap, Crockeries Soaps and Toilet Soap under GST law?
Facts
The applicant manufactures and trades detergent soap bars in various weights marketed under the brand names Chehar and Tavas. They sought an advance ruling to clarify the classification and GST rate applicable to these products, specifically whether they qualify as laundry soap or toilet soap under the relevant notification. The applicant contended that their products should attract a 5% GST rate.
Ruling
| Question | What the authority ruled |
|---|---|
| Classification and rate for Washing/Laundry Soap | Classifiable under HSN 34011942, liable to 18% GST (9% CGST + 9% SGST). Covered under Entry No. 66 of Schedule-II of Notification No. 09/2025-Central Tax (Rate). |
| Classification of laundry soap vs toilet soap | Not answered. Declined in light of discussions. |
| Applicable HSN and rates for other soaps | Not answered. Declined to provide answers for other soaps. |
The authority ruled that the applicant's products are classified as laundry soap under HSN 34011942. Consequently, these products are subject to an 18% GST rate (9% CGST + 9% SGST) under Entry No. 66 of Schedule-II of Notification No. 09/2025-Central Tax (Rate). The authority declined to answer the questions regarding other types of soaps.
Reasoning
The authority determined that the applicant's products are laundry soaps based on their chemical composition and intended use, rejecting the applicant's reliance on the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, as irrelevant for GST classification. It held that definitions from other statutes cannot be applied to GST law. Relying on Chapter 34 of the Customs Tariff Act, 1975, and the HSN notes, it concluded the products fall under heading 3401. Finally, it applied the rate specified in Entry No. 66 of Schedule-II of Notification No. 09/2025-Central Tax (Rate).
Provisions relied on
- Section 97(2) of CGST/GGST Act, 2017
- Chapter 34 of the First Schedule to the Customs Tariff Act, 1975
- Notification No. 09/2025-Central Tax (Rate) dated 17.09.2025
For the practitioner
This ruling clarifies that laundry soaps in bar or cake form are subject to **18% GST** under HSN 34011942. It reinforces that definitions from non-tax statutes like the Medicinal and Toilet Preparations Act are **not applicable** for determining GST classification. Practitioners should note the authority's refusal to provide advisory opinions on products not manufactured by the applicant.
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/4_chehar_industry_pvt_ltd_0001_compressed.pdf
Legibility of the scan, as read: high.
Prepared 11-10-2026.
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