Wipes classification under GST depends on whether they are impregnated with cosmetics or with soap or detergent.

Classification of wet baby wipes, wet face wipes, bed and bath towels, and shampoo towels depends on the HSN notes, chapter notes and the essential character of the goods. Tariff terminology governs the GST rate notifications, and nonwovens merely serving as a carrier medium are classified by the nature of the impregnation. Products impregnated with perfume or cosmetics fall under heading 3307, while goods coated with soap or detergent fall under heading 3401. GST is payable according to the heading determined on that basis.

---

---

Issues: Whether the products Wet Baby Wipes, Wet Face Wipes, Bed and Bath Towels and Shampoo Towels are classifiable under heading 3307 or heading 3401 depending upon their constituents, and the GST rate applicable to the relevant heading.

Analysis: The rate notifications adopt the tariff terminology and the rules for interpretation of the First Schedule to the Customs Tariff Act, 1975. The classification therefore turns on the HSN notes, chapter notes and the essential character of the goods. Chapter 33 covers wadding, felt and nonwovens impregnated, coated or covered with perfume or cosmetics, while heading 3401 covers paper, wadding, felt and nonwovens impregnated, coated or covered with soap or detergent. Chapter Note 1(a) to Chapter 56 excludes nonwovens impregnated with such preparations where the textile material is merely a carrying medium. On the facts, the products are manufactured by impregnating lotion into dry nonwoven wipes, and the ingredients and product use show that they function as cosmetic or perfumery preparations rather than soap or detergent. The cited clarification on wipes using spun lace nonwoven fabric also supports classification according to whether the impregnation is with cosmetics or with soap/detergent.

Conclusion: The products are appropriately classifiable under heading 3307 if impregnated with perfumes or cosmetics, and under heading 3401 if coated with soap or detergent. The applicable GST rate is to be charged according to the heading so determined.

---