TaxTMI 
TaxTMI 
2026 (2) TMI 944
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....thority for Advance Ruling Regulations, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant, McNROE Consumer Products Pvt. Ltd., is presently engaged in the FMCG business and is one of the fastest growing companies in the personal hygiene segment. The applicant is the owner of popular brands such as Wild Stone, Secret Temptation and Heaven's Garden. In the grooming segment, the applicant supplies shaving cream and shaving foam, which are pre-shave cosmetic preparations used for softening facial hair and facilitating smooth shaving. Shaving cream is a semi-solid emulsion which r....
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....Function / Use Applied on beard area to soften and lubricate hair for shaving Same Essential Character Foaming, cleansing, lubricating medium for shaving Same Both are designed for identical end use - facilitating a smooth shave by softening beard hair and lubricating the skin. 2.3 Prior to 22.09.2025, GST of 18% was applied on the supply of the goods falling under Heading 3307. However, after the amendment vide Notification No. 09/2025-Central Tax (Rate) dated 17th September 2025, effective from 22nd September 2025, the rate structure was bifurcated - prescribing a concessional GST rate of 5% in respect of shaving cream, shaving lotion and after-shave lotion. Further, the notification also stated that GST of 18% to applied on the supply of Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included; prepared room deodorisers, whether or not perfumed or having disinfectant properties [other than shaving cream, shaving lotion and aftershave lotion. 2.4 Interpretation on whether "Shaving Foam" and "Shaving Cream" are the same produ....
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....7.09.2025, effective from 22.09.2025. As per Rule 3(b) of the General Rules for Interpretation, classification must be determined based on the essential character of the goods rather than minor differences in presentation or packaging. 2.7 On a literal reading, since shaving foam is not expressly mentioned against the concessional rate entry, it may appear to fall under the general rate of 18%. However, such an interpretation would be contrary to the true scope, intent, and scheme of Heading 3307. The principle of ejusdem generis mandates that goods of the same kind or nature as those specifically listed should be treated alike unless expressly excluded. The principle of parity and legislative intent clearly indicates that the concessional rate was intended for basic shaving preparations facilitating the act of shaving. 2.8 Excluding shaving foam-being a direct functional equivalent of shaving cream-would result in arbitrary and irrational classification without any reasonable basis. Under the erstwhile Central Excise Tariff, both shaving cream and shaving foam were classified under HSN 33071010, and judicial precedents under the earlier regime have consistently recognised....
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.... the records of the issue as well as submissions made by the authorized representative of the applicant during personal hearing. The Revenue has not expressed any view in this regard. 4.2 According to the facts narrated by the applicant, it is a company dealing in FMCG in the category of personal hygiene. It is home to brands like Wild Stone, Secret Temptation & Heaven's Garden. In the grooming segment for shaving purposes, the applicant supplies shaving cream and shaving foam, which, the applicant believes, are pre-shave cosmetic preparations used for softening facial hair and facilitating smooth shaving. The applicant states while shaving cream is a semi-solid emulsion that requires manual lathering before application, shaving foam is an aerosol-based pre-lathered preparation dispensed through a propellant system. Both are intended for the same functional use, share similar formulation and composition, and differ only in their form and method of application. According to the applicant's submission, there is no difference in the essential character and consumer usage of the two goods. Shaving cream has Stearic Acid, Myristic Acid, Glycerin, Alkali (KOH/NaOH) and perfu....
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....n the skin. This is the third and the last stage of shaving. There may be four kinds of agents for creating lather on the face/ skin at the second stage of shaving as described above. 1. Shaving soap: we may use shaving soap for this purpose. Normally we soak a shaving brush with normal or warm water first and then load the soap by swirling the wet brush on the soap. Then we build the lather and spread it with the help of soap taken on the brush and apply water as and when required in appropriate quantity. 2. Shaving cream: We can use shaving cream also. In this case, we apply some amount of cream and create lather by swirling a wet brush on the cream and then spread the lather with the brush. 3. Shaving gel: It may also be used for this purpose. Here we apply some amount of gel and create lather by using a wet brush or we can take some amount of gel on our fingers and apply it gently to create lather and spread it on the skin from where hair is to be removed. 4. Shaving foam: It has different kind of application. We do not need a brush to use shaving foam. In this case lather is already created. We have to shake the container of the foam well....
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....nst shaving cream and shaving gel. Shaving cream is included in Chapter 33 covering 'Essential oils and resinoids, perfumery, cosmetic or toilet preparations' and is covered by tariff item 33071010. Again, shaving cream and shaving gel as organic surface-active products and preparations for washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap is included in Chapter 34 and related tariff item is 34013012. 3. Chapter Note 1(b) of Chapter 33 excludes 'soap or other products of heading 3401' from Chapter 33. Similarly, Chapter Note 1(c) of Chapter 34 excludes inter alia 'shaving creams and foams (heading 3307)' from Chapter 34. The said note is reproduced here: 1. This Chapter does not cover: (a) edible mixtures or preparations of animal, vegetable or microbial fats or oils of a kind used as mould release preparations (heading 1517); (b) separate chemically defined compounds; or (c)shampoos, dentrifices, shaving creams and foams, or bath preparations, containing soap or other organic surface-active agents (heading 3305, 3306 or 3307). 4.7 A conjoint reading of the referred HSN codes i....
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.... II specifically excludes shaving cream (having tariff item 33071010), shaving lotion and aftershave lotion (both having tariff item 33071090) from this entry to accommodate these goods in Schedule I vide entry no. 249. It implies that pre-shave and shaving or after shave preparations other than shaving cream, shaving lotion and aftershave lotion having tariff item 33071090 remain in entry no. 64 of Schedule II. As such, shaving cream, shaving lotion and aftershave lotion is to be taxed @ 2.5% CGST + 2.5% SGST in terms of Notification No. 01/2017-Central Tax (Rate) Dated 28.06.2017 as amended by Notification No. 9/2025-Central Tax (Rate) Dated 17.09.2025. On the other hand, shaving foam, being a shaving preparation is left with serial no. 64 of Schedule II to be taxed @ 9% CGST + 9% SGST in terms of Notification ibid. In view of the foregoing discussion, we rule as under: RULING 1. Whether "Shaving Foam" & "Shaving Cream" is the same product and is classified under HSN Code 33071010? Answer: The two are not the same products. Both shaving cream and shaving foam are included in tariff heading 3307. While the former is covered by tariff item 33071010, the latter is ....