AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (5) TMI 1569
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....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 is engaged in the manufacture of laundry soap weighing less than 500 grams, classifiable under HSN 34011942. The said product is manufactured and supplied as a cleansing preparation intended for washing and laundry purposes. In this background, the applicant has approached this Authority seeking clarification regarding the applicability of the revised GST rate of 5 percent notified vide the relevant GST rate notification with effect from 22.09.2025 and the appropriate rate of tax applicable to the supply of the said l....
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...., in the form of liquid or cream and put up for retail sale, whether or not containing soap; paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent 2.3 In view of the above entries, the issue involved in the present application is whether the soaps manufactured and supplied by the Applicant are classifiable under Entry No. 251 of Schedule I taxable at 5 per cent or under Entry No. 66 of Schedule II taxable at 18 per cent of Notification No. 9/2025. 2.4 The applicant submits that soap has historically been recognised as an essential commodity used for basic hygiene purposes. Evidence traces soap-like products to around 2800 BC in ancient Babylon, while commercial soap production began in England during the 12th century. With the repeal of soap tax in England in 1853, soap became widely available as a mass-consumption product across Europe and British-ruled regions. In India, more than 700 registered manufacturers presently produce soap bars, cakes and liquid soaps, with combined annual revenues exceeding Rs.1,700 crore. Market studies indicate that between 2004 and 2009 the soap industry grew at a CAGR of approximately 9-12 per cent, with bar....
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....tice. Under such standards, soaps having TFM above 60 per cent qualify as toilet soaps irrespective of their end use. According to him, soaps commonly referred to as laundry soaps may also fall within the category of toilet soaps if their TFM exceeds 60 per cent. If the legislative intent had been to exclude laundry soaps from the concessional entry, the notification would have expressly provided such exclusion. Notably, Entry No. 251 excludes only industrial soap. The deliberate exclusion of only industrial soap indicates that all other soaps satisfying the parameters of toilet soap remain covered within the concessional entry. The applicant submits that only two categories of soaps would therefore fall under Entry No. 66 of Schedule II attracting GST at 18 per cent, namely industrial soaps which are specifically excluded from Entry No. 251, and soaps with TFM below 60 per cent which do not satisfy the BIS classification of toilet soap. Since the soaps manufactured by the Applicant have TFM exceeding 60 per cent, they merit classification under Entry No. 251 of Schedule I taxable at 5 per cent. 2.8 According to the applicant, both toilet soaps and laundry soaps are manufactured....
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....omposition would be inconsistent with the principle of uniform taxation. The functional interchangeability of these products demonstrates that the distinction lacks practical or commercial justification. 2.11 The Applicant submits that in the case of State of Gujarat vs. Prakash Trading Co., the court observed that the essential character of soap as a cleansing agent remains the same irrespective of whether it is used for the human body or for washing fabrics. The ingredients used and the process of saponification remain identical for both types of soap products. Therefore, differentiating tax rates solely on the basis of intended use would be arbitrary where the chemical composition and manufacturing process are substantially the same. 2.12 The Applicant further submits that laundry soap is widely recognised as a product of mass consumption used predominantly by low-income and rural households. The objective of Notification No. 9/2025 was to make essential hygiene products affordable to the general public. Imposing a higher rate of tax on a product primarily consumed by economically weaker sections would defeat the purpose of the concessional tax regime and create an inequit....
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....s the rate of tax of laundry soap by virtue of Notification No. 09/2025-Central Tax (Rate) Dated 17.09.2025? 4.4 According to the submission of the applicant, soap is the product of saponification. It is a process of reaction between an alkali and oil (fatty substances). When this reaction takes place, glycerine is formed as a by-product which gives the soap its moisturising property. The applicant believes that his manufactured product 'laundry soap' is included in tariff heading 3401 which covers all varieties of soap including toilet soaps, industrial soaps, laundry soaps and similar saponified cleansing products. The applicant is of the opinion that toilet soap and the laundry soap manufactured by him is the same product and he has explained it as under: According to the applicant, Bureau of Indian Standards (in short BIS) has provided the definition and technical requirements for toilet soap under 'IS 2888:2004'. The applicant opines that classification of soaps is primarily based on Total Fatty matter (TFM) which lends soaps their soapy feel. Referring to the literature of BIS the applicant points out that toilet soap contains higher quantity of TFM, usually rangi....
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....3) 251. 3401 Toilet Soap (other than industrial soap) in the form of bars, cakes, moulded pieces or shapes Schedule II - 9 % S.No. Chapter/Heading/ Sub-heading/Tariff item Description of goods (1) (2) (3) 66. 3401 Soap; organic surface-active products and preparations for use as soap, in the form of cakes, moulded pieces or shapes, whether or not containing soap[other than toilet soap in the form of bars, cakes, moulded pieces or shapes]; 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; paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent If we carefully look at the above entries it will be evident that toilet soap in the form of bars, cakes, moulded pieces or shapes is covered by serial no. 251 as above. Of course industrial soap is outside the purview of this entry by virtue of exclusion clause. On the other hand, serial no. 66 includes inter alia soap, organic surface-active products and preparations for use as soap in the form of cakes, moulded pieces or shapes whether or not containing....
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....ains, grease, and dirt from various types of textiles. Some characteristic features of laundry soap are as under: • It contains surfactants, enzymes, builders, and bleaching agents. • Common surfactants used in laundry soap include sodium lauryl sulfate (SLS) or sodium dodecylbenzenesulfonate (SDBS). • It contains surfactants that lower water's surface tension for effective dirt and stain removal. • Enzymes break down complex stains into smaller, more soluble molecules. • Builders like sodium carbonate (Na₂CO₃) or sodium tripolyphosphate (Na₅P₃O₁₀) soften water and enhance cleaning efficiency. • Some laundry soaps may include bleaching agents to whiten and brighten clothes. • Typically it has an alkaline pH level (9-12) for effective stain removal. • It is designed to remove dirt, stains, oils, and odours from fabrics. • Laundry soap is available in various forms: bars, powders, or liquids. • It may or may not have added fragrances. • Additional additives like fabric softeners or brightening agents can....
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....odium chloride), percent by mass, Max 1.50 1.50 1.50 vi) Free carbonated alkali, percent by mass, Max 1.0 1.0 1.0 vii) Lather 280 240 200 The following table represents the requirements of laundry soap [IS 285:1992] according to different types: Sl No. Characteristic Requirement for Type 1 (Pure Soaps) Type 2 (Built Soaps) Gr 1 Gr 2 1 2 3 4 5 i) Total fatty matter, percent by mass, Min 62.0 45.0 35.0 ii) Rosin acid, percent by mass of total fatty matter, Max 15.0 15.0 15.0 iii) Unsaponified fatty matter, percent by mass, Max 0.5 0.5 0.5 iv) Free caustic alkali, as sodium hydroxide (NaOH), percent by mass, Max 0.1 0.2 0.2 v) Matter insoluble in alcohol, percent by mass, Max 2.5 20 0 vi) Titre of total fatty acids, °C, Min 33 0 0 vii) Glycerol, percent by mass, Max 1.0 0 0 viii) Chloride (as sodium chloride), percent by mass, Max 2.0 3.0 3.0 ix) LSD/ NSD content, percent by mass, Min 0.0 0.0 4.0 What we find from the a....
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.... CREAM AND PUT UP FOR RETAIL SALE, WHETHER OR NOT CONTAINING SOAP; PAPER, WADDING, FELT AND NONWOVENS, IMPREGNATED, COATED OR COVERED WITH SOAP OR DETERGENT - Soap and organic surface-active products and preparations, in the form of bars, cakes, moulded pieces or shapes, and paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent : 3401 11 - - For toilet use (including medicated products): 3401 11 10 - - - Medicated toilet soaps 3401 11 20 - - - Shaving soaps other than shaving cream 3401 11 90 - - - Other 3401 19 - - Other : - - - Bars and blocks of not less than 500 gm in weight : 3401 19 11 - - - - Industrial soap 3401 19 19 - - - - Other 3401 19 20 - - - Flakes, chips and powder 3401 19 30 - - - Tablets and cakes - - - Household and laundry soaps not elsewhere specified or included : 3401 19 41 - - - - Household soaps 3401 19 42 - - - - Laundry soaps 3401 19 90 - - - Other 3401 20 00 - Soap in other forms 3401 30 - Organic surface-active products and preparations f....