When it comes to everyday essentials like soap, even a small change in tax rates can impact household budgets. In India, the Goods and Services Tax (GST) regime brought significant reforms to how products are taxed—including soaps. But has the GST rate on soap changed recently? Let’s clarify the facts with verified data from official sources.
Official GST Rate on Soap: Now 5% (Effective September 22, 2025)
As per the Government of India’s Central Board of Indirect Taxes and Customs (CBIC) and the GST Council’s latest notifications (including the 56th GST Council Meeting held in September 2025), soap now attracts a 5% GST rate, down from the previous 18% slab. This change is part of the GST 2.0 reforms aimed at easing the burden on essential household items.
This applies to:
- Toilet soaps (e.g., Dove, Lux, Lifebuoy)
- Medicated soaps
- Liquid soaps
- Beauty soaps
Source Verification:
- CBIC GST Rate Notification No. 9/2025–Central Tax (Rate): Effective September 22, 2025, confirms HSN code 3401 (soaps) falls under the new 5% GST slab for essential goods.
- GST Council Notification No. 1/2017–Central Tax (Rate) and amendments (superseded by Notification No. 9/2025–Central Tax (Rate)) shift soap from Schedule III (18%) to Schedule I (5%) for daily essentials.
- Press Information Bureau (PIB), Government of India: Releases from September 2025 confirm the reduction in GST rates for soaps as part of rationalization to 5%.
📌 Important: The GST rate for soap has been reduced from 18% to 5% effective September 22, 2025. Prior to this, since the implementation of GST on July 1, 2017, soap had consistently been taxed at 18%.
Debunking the Myth: Persistent Rumors of Further Reductions
Rumors occasionally circulate on social media and YouTube claiming that soap GST could drop to 0% or remain unchanged. These are outdated or false post-September 2025. The confirmed rate is now 5%.
- Toilet soap is now classified under the 5% GST slab for essentials (alongside items like edible oils and medicines).
- Medicinal/AYUSH soaps also fall under 5%, with no separate notification.
- Detergent bars or industrial cleaning soaps (HSN 3402) remain at 18%, unchanged.
YouTube videos or unverified blogs from early 2025 or pre-reform often confuse soap with other items or reference the old 18% rate, ignoring the GST 2.0 updates. Social media posts from before September 2025 may still propagate the 18% figure—always check official sources.
Pre-GST vs. Post-GST: What Actually Changed?
| Period | Tax Structure | Effective Tax on Soap (Approx.) |
|---|---|---|
| Pre-July 2017 | VAT + Excise + CST | 22–28% (varied by state) |
| July 2017 – September 2025 | Unified GST | 18% (nationwide) |
| Post-September 22, 2025 | GST 2.0 Reforms | 5% (nationwide) |
Also See:
Final Verdict
- Old GST Rate on Soap (2017–September 2025): 18%
- New GST Rate on Soap (as of September 2025): 5%
- This official reduction has been announced by the GST Council and the Ministry of Finance as part of broader reforms to support households.
Always rely on government portals like cbic.gov.in, gst.gov.in, or PIB for accurate tax information—not social media forwards or unverified content. This update promotes affordability, potentially encouraging sustainable soap choices with lower environmental footprints through reduced costs.