In re East African (India) Overseas (GST AAR Uttarakhand)
The Authority for Advance Ruling, Uttarakhand examined an application filed for determining the correct GST classification and applicable tax rate on Medicated Toilet Soap manufactured by the applicant. The applicant was engaged in the manufacture of pharmaceutical and medicated products and had been classifying medicated toilet soap under HSN 3401, paying GST at 18% as per Notification No. 1/2017-CT (Rate). Following the issuance of Notification No. 9/2025-CT (Rate) dated 17.09.2025, which reduced GST to 5% for “Toilet Soap (other than industrial soap) in the form of bars, cakes, moulded pieces or shapes,” ambiguity arose as to whether medicated toilet soap would qualify for the concessional rate.
The applicant sought an advance ruling on whether medicated toilet soap would attract GST at 5% or continue to be taxed at 18%. The applicant contended that medicated toilet soap is a type of toilet soap, distinct from industrial soap, and therefore should fall within the concessional entry. It was argued that the notification did not expressly exclude medicated toilet soap and that ambiguity should be clarified to avoid disputes.
The concerned officer opposed this view, submitting that medicated toilet soap is a distinct product with therapeutic and medicinal properties, different in nature and use from ordinary toilet soap meant for mass consumption. It was argued that the concessional rate was intended only for general-use toilet soaps and not for specialised medicated products.
