5% GST On Shaving Cream and 18% On Shaving Foam: AAR

The West Bengal Authority for Advance Ruling (WBAAR) has ruled that shaving foam and shaving cream are not the same product for GST classification purposes and that 5% goods and service tax (GST) is payable on shaving cream and 18% on shaving foam. The bench of Jaydip Kumar Chakrabarti and Shafeeq S. has observed that the Authority ruled that shaving foam and shaving cream are not the same product. Shaving cream is classifiable under 33071010. Shaving foam is classifiable under 33071090. The concessional 5% GST rate applies only to shaving cream, shaving lotion and aftershave lotion. Shaving foam continues to attract GST at 18%. The ruling came in the case of McNROE Consumer Products Private Limited, a leading FMCG company known for brands such as Wild Stone, Secret Temptation and Heaven's Garden. The company had sought clarity on whether shaving foam and shaving cream could be treated as the same product under HSN Code 33071010 and whether both would attract GST at 5% following the September 2025 rate revision. Prior to September 22, 2025, all products under Heading 3307 attracted GST at 18%. However, pursuant to Notification No. 09/2025 – Central Tax (Rate), the rate structure was modified. The government granted a concessional GST rate of 5% (2.5% CGST + 2.5% SGST) for Shaving cream, Shaving lotion and aftershave lotion All other pre-shave, shaving or after-shave preparations continued to attract 18% GST (9% CGST + 9% SGST). McNROE contended that shaving foam is functionally and compositionally identical to shaving cream and differs only in presentation — being dispensed in pre-lathered aerosol form. It argued that both products serve the same purpose: softening facial hair and facilitating smooth shaving. On this basis, the company claimed shaving foam should also fall under tariff item 33071010 and qualify for the reduced 5% GST rate. The company submitted that both products contain similar base ingredients such as stearic acid, glycerin, and surfactants. The essential character and end use are identical. The only distinction lies in form — shaving cream requires manual lathering, while shaving foam is pre-lathered. Under the General Rules for Interpretation and principles such as ejusdem generis, products of identical nature should be treated alike unless expressly excluded. Under the earlier indirect tax regime, both were treated similarly under HSN 33071010. The applicant further argued that excluding shaving foam from the concessional rate would result in arbitrary classification and defeat legislative intent. The WBAAR, however, disagreed with the applicant’s submissions. The Authority observed that while both products serve the same basic purpose in the shaving process — creating a protective lather layer — they differ significantly in Physical properties, Chemical composition, Application method, and Commercial identity. The ruling noted that shaving cream is a semi-solid emulsion requiring manual lathering, whereas shaving foam is dispensed as ready-made foam using propellants such as butane or propane. From a commercial and common parlance perspective, the Authority emphasized that consumers and retailers treat shaving cream and shaving foam as distinct products. A customer asking for shaving foam would not ordinarily be supplied shaving cream, and vice versa. Examining the Customs Tariff structure, the Authority held tariff Item 33071010 specifically covers “Shaving cream.” Tariff Item 33071090 is a residual category covering other pre-shave, shaving or after-shave preparations. The Authority concluded that shaving cream is classifiable under 33071010 and shaving foam falls under the residual entry 33071090. Thus, the two products are not identical for classification purposes. With respect to GST applicability, the Authority referred to Notification No. 01/2017 – Central Tax (Rate) as amended by Notification No. 09/2025. It noted that Serial No. 249 of Schedule I (5% GST) specifically lists shaving cream, shaving lotion and aftershave lotion. Serial No. 64 of Schedule II (18% GST) covers all other pre-shave, shaving or after-shave preparations, excluding those specifically mentioned in Schedule I. Since shaving foam is not specifically mentioned in the concessional entry, and falls under tariff item 33071090, it continues to attract GST at 18%. Ruling Details Applicant’s Name: McNROE Consumer Products Private Limited Ruling Date: 13/02/2026 Click Here To Read Ruling Read More: 18% GST Payable On Fee Paid To Arbitrator: AAR

5% GST On Shaving Cream and 18% On Shaving Foam: AAR

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