Manufacturing
A soap and detergent maker's GST invoice must split products by rate. Toilet soap, other than industrial soap, in the form of bars, cakes or moulded pieces under HSN 3401 is listed at 5% from 22 September 2025. Detergent powders, liquid detergents, dishwash liquids and other washing and cleaning preparations under 3402, and other soaps of 3401 such as laundry bars, are at 18%. Each line should show pack size, MRP, batch and HSN.
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Or create these invoices in software, free| Description | HSN/SAC | Qty | Rate (₹) | Taxable (₹) | GST |
|---|---|---|---|---|---|
| Toilet soap bar 100 g, grade 1, MRP ₹45 | 3401 | 2400 PCS | 26.00 | 62,400.00 | 5% |
| Detergent powder 1 kg, MRP ₹110 | 3402 | 1200 PCS | 68.00 | 81,600.00 | 18% |
| Laundry detergent bar 250 g, MRP ₹30 | 3401 | 2400 PCS | 18.00 | 43,200.00 | 18% |
| Liquid dishwash 500 ml, MRP ₹99 | 3402 | 1000 PCS | 55.00 | 55,000.00 | 18% |
| Liquid laundry detergent 1 litre, MRP ₹199 | 3402 | 600 PCS | 112.00 | 67,200.00 | 18% |
| Taxable value | ₹3,09,400.00 | ||||
| GST (CGST + SGST, or IGST if inter-state) | ₹47,580.00 | ||||
| Invoice total | ₹3,56,980.00 | ||||
Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
Read more: GST Invoice Format: How to Lay Out a Compliant Tax Invoice · Credit Note Under GST: When, How and By When to Issue It · GST Rates and Slabs in India: The Current Structure Explained · Barcode Billing for Retail: How to Set It Up Step by Step
Notification 9/2025-Central Tax (Rate) lists toilet soap, other than industrial soap, in the form of bars, cakes, moulded pieces or shapes under 3401 in the 5% schedule. Other soaps and organic surface-active products of 3401 are in the 18% schedule. Laundry bars and industrial soaps therefore stay at 18%, and the invoice should describe each bar's purpose clearly.
Organic surface-active agents and washing and cleaning preparations under 3402 are in the 18% schedule, except sulphonated castor oil, fish oil or sperm oil, which are listed at 5%. Detergent powders, liquids, dishwash and floor cleaners are washing or cleaning preparations at 18%.
Combo packs that include a 5% toilet soap with an 18% detergent may be mixed supplies taxed at the higher rate, unless sold separately. 'Buy 3 get 1' offers are a single supply at a reduced price per unit, not a free supply.
FMCG distributors receive schemes and discounts. Discounts agreed before supply and linked to specific invoices may reduce taxable value through credit notes, provided the distributor reverses matching credit.
Packaged soaps and detergents must carry MRP and net quantity on labels under the packaged commodity rules. Invoice descriptions should match the pack labels.
Soap makers buy fatty acids, oils, caustic soda, perfumes and packaging, much of it at 18%, while toilet soap bars are now at 5%. This difference can build up input tax credit that cannot be used against output tax. A refund for an inverted duty structure under section 54(3) may be available using the Rule 89(5) formula, but only credit on inputs counts, not on input services or capital goods. Keep supplier invoices with correct HSN codes, and split your sales by product so that the turnover of 5% soaps and 18% detergents can be shown separately in the refund calculation.
Hotels, hospitals and facility management firms buy detergents and cleaners in 5 litre cans or 50 kg bags. These are the same 3402 products at 18%, but invoices should show the pack size, dilution ratio if specified in the tender, and the purchase order reference. Government buyers may deduct GST TDS when the contract value exceeds the threshold, and the deducted amount appears in your electronic cash ledger after the deductor files its return. Track these deductions so the receivable is not shown as short-paid.
Toilet soap bars, other than industrial soap, under heading 3401 are listed at 5% from 22 September 2025.
Yes. Washing and cleaning preparations under heading 3402, including detergent powder, are in the 18% schedule.
No. The 5% entry is for toilet soap. Laundry bars and other soaps of 3401 are at 18%.
Treat it as one supply of four units at the total price charged. The taxable value is the price actually paid.
Not under GST law, but they help with quality complaints and are expected by distributors.
Small toilet soap bars supplied to hotels are still toilet soap in the form of bars or cakes, so the 5% entry can apply. Liquid soaps, shower gels and shampoos supplied in dispensers are different products and must be classified on their own.
Sources: Gazette of India — Notification 9/2025-Central Tax (Rate), G.S.R. 641(E), 17 Sept 2025 · CBIC — GST rates for goods and services
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