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Chapter 34 - Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes,"dental Is axes" and dental preparations with a basis of plaster

Notes
  1. This Chapter does not cover:
    1. (a) edible mixtures or preparations of animal or vegetable fats or oils of a kind used as mould release preparations (heading 1517);
    2. separate chemically defined compounds; or
    3. shampoos, dentrifices, shaving creams and foams, or bath preparations, containing soap or other organic surface-active agents (heading 3305, 3306 or 3307).
  2. For the purposes of heading 3401, the expression \"soap\" applies only to soap soluble in water. Soap and the other products of heading 3401 may contain added substances (for example, disinfectants, abrasive powders, fillers or medicaments). Products containing abrasive powders remain classified in heading 3401 only if in the form of bars, cakes or moulded pieces or shapes. In other forms they are to be classified in heading 3405 as \"scouring powders and similar preparations\".
  3. For the purposes of heading 3402, \"organic surface-active agents\" are products which when mixed with water at a concentration of 0.5% at 20°C and left to stand for one hour at the same temperature:
    1. (a) give a transparent or translucent liquid or stable emulsion without separation of insoluble matter; and
    2. reduce the surface tension of water 4.5 X 10-2 N/m (45 dyne/Cm) or less.
  4. In heading 3403, the expression \"petroleum oils and oils obtained from bituminous minerals\" applies to the products defined in Note 2 to Chapter 27.
  5. In heading 3404, subject to the exclusions provided below, the expression \"artificial waxes and prepared waxes\" applies only to:
    1. chemically produced organic products of a waxy character, whether or not water-soluble;
    2. products obtained by mixing different waxes;
    3. products of a waxy character with a basis of one or more waxes and containing fats, resins, mineral substances or other materials, the heading does not apply to:
      1. products of headings 1516, 3402 or 3823, even if having a waxy character;
      2. unmixed animal waxes or unmixed vegetable waxes, whether or not refined or coloured, of heading 1521;
      3. mineral waxes and similar products of heading 2712 whether or not intermixed or merely coloured; or
      4. waxes mixed with, dispersed in or dissolved in a liquid medium (headings 3405, 3809, etc.).
GST Rates of Goods
Chapter HeadingDescriptionRate of GSTScheduleSr.No
3401Soap; organic surface-active products and preparations for use as soap, in the form of bars, cakes, moulded pieces or shapes, whether or not containing soap; 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 detergent5%I61<sup>1</sup>
3402Sulphonated castor oil, fish oil or sperm oil5%I186
3403Lubricating preparations (including cutting-oil preparations, bolt or nut release preparations, anti-rust or anti-corrosion preparations and mould release preparations. based on lubricants) and preparations of a kind used for the oil or grease treatment of textile materials, leather, furskins or other materials, but excluding preparations containing, as basic constituents,70% or more by weight of petroleum oils or of oils obtained from bituminous minerals28%IV32
3404Artificial waxes and prepared waxes18%III62
3405Polishes and creams, for footwear, furniture, floors, coachwork, glass or metal, scouring pastes and powders and similar preparations (whether or not in the form of paper, wadding, felt,nonwovens. cellular plastics or cellular rubber, impregnated, coated or covered with such preparations), excluding waxes of heading 340428%IV33
3406Candles, tapers and the like5%I75
3407Preparations known as "dental wax" or as "dental impression compounds", put up in sets, in packings for retail sale or in plates, horseshoe shapes, sticks or similar forms; other preparations for use in dentistry, with a basis of plaster (of calcined gypsum or calcium sulphate)18%III63
3402Organic surface-active agents (other than soap); surface-active preparations, washing preparations (including auxiliary washing preparations) and cleaning preparations, whether or not containing soap, other than those of heading 340128%IV31<sup>2</sup>
3402Organic surface-active agents (other than soap); surface active preparations, washing preparations (including auxiliary washing preparations) and cleaning preparations, whether or not containing soap, other than those of heading 3401 [other than Sulphonated castor oil, fish oil or sperm oil]18%III61A<sup>3</sup>
3403Lubricating preparations (including cutting-oil preparations, bolt or nut release preparations, anti-rust or anti-corrosion preparations and mould release preparations, based on lubricants) and preparations of a kind used for the oil or grease treatment of textile materials, leather, furskins or other materials, but excluding preparations containing, as basic constituents, 70% or more by weight of petroleum oils or of oils obtained from bituminous minerals18%III61B
3405Polishes and creams, for footwear, furniture, floors, coachwork,glass or metal, scouring pastes and powders and similar preparations (whether or not in the form of paper, wadding, felt,nonwovens, cellular plastics or cellular rubber, impregnated, coated or covered with such preparations), excluding waxes of heading 340418%III62A
3407Preparations known as "dental wax" or as "dental impression compounds", put up in sets, in packings for retail sale or in plates, horseshoe shapes, sticks or similar forms; other preparations for use in dentistry, with a basis of plaster (of calcined gypsum or calcium sulphate)18%III63<sup>1</sup>
3407Modelling pastes, including those put up for children's amusement28%IV34<sup>1</sup>
3407Modelling pastes, including those put up for children's amusement; Preparations known as "dental wax" or as "dental impression compounds", put up in sets, in packings for retail sale or in plates, horseshoe shapes, sticks or similar forms; other preparations for use in dentistry, with a basis of plaster (of calcined gypsum or calcium sulphate)18%III63<sup>1</sup>
3401 30Organic 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 detergent28%IV30<sup>1</sup>
3406Soap; organic surface-active products and preparations for use as soap, in the form of bars, cakes, moulded pieces or shapes, whether or not containing soap18%III61
Other Exemptions
DescriptionNotification
Exemption from Registration - Small Taxpayers having turnover below threshold limitNotification No. 10/2019-C.T., dated 7-3-2019
Composition Levy Scheme for Small Taxpayers having Turnover Up to Rs. 1.5 Crore — Old SchemeNotification No. 8/2017-C.T., dated 27-6-2017
Composition Levy Scheme for Small Taxpayers having Turnover up to Rs. 1.5 Crore — New SchemeNotification No. 14/2019-C.T., dated 7-3-2019
Scheme to Pay GST 0 6% - For Taxpayers having turnover less than Rs. 50 Lakhs and Not Eligible for Composition Scheme.Notification No. 2/2019-C.T. (Rate), dated 7-3-2019
Exemption to Specified Goods supplied to Specified Recipients for Petroleum Exploration etc.Notification No. 3/2017-Central Tax (Rate), dated 28-6-2017]
Exemption to Goods Supplied to CSD by way of Refund Notification No. 6/2017-Central Tax (Rate), New Delhi, dated 28-6-2017.
Exemption to goods supplied by CSDNotification No. 7/2017-Central Tax (Rate), New Delhi, dated 28-6-2017
United Nation, International Organisation and Foreign Diplomatic Mission Notified as Entitled for refund of GST Paid on supplies received.Notification No. 16/2017-Central Tax (Rate), dated 28-6-2017
Reduced GST on Supply of Goods to ExporterNotification No. 40/2017-CT. (Rate), dated 23-10-2017
Concessional GST on Supply of Scientific and technical equipment to research institutionsNotification No. 45/2017-C.T. (Rate), dated 14-11-2017
Departmental Clarifications / Case Law
Appropriate classification of baby wipes, racial tissues and other similar products:
o Varied practices are being followed regarding the classification of baby wipes, facial tissues and other similar products, and references have been received requesting for correct classification of these products. As per the references, these products are currently being classified under different HS codes namely 3307,3401 and 5603 by the industry.<br>o Commercially, wipes are categorized into various types such as baby wipes, facial wipes. disinfectant wipes, make-up remover wipes etc. These products are generally made by using non-woven fabrics of viscose and polyviscous blend and are sprinkled with demineralizal water and various chemicals and fragrances, which impart the essential character to the product. The base raw materials are moisturising and cleansing agents, preservatives, aqua base, cooling agents, perfumes etc. The textile material is present as a carrying medium of these cleaning/wiping components.<br<o According to the General Rules for Interpretation [GRI-3(b)] of the First Schedule to the Customs Tariff Act (CIA). 1975, "Mixtures. composite goods consisting of different materials or made up of Afferent components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable." Since primary function of the article should be taken into consideration while deciding the classification, it is clear that the essential character of the wipes in the instant case is imparted by the components which are to be mixed with the textile material.<br>o As per the explanatory notes to the HSN, the HS code 5603 clearly excludes non-woven, impregnated, coated or covered with substances or preparations such as perfumes or cosmetics, soaps or detergents, polishes, creams or similar preparations. The HSN is reproduced as follows: The heading also excludes:Nonwoven, impregnated, coated or covered with substances or preparations [i.e. perfumes or cosmetics (Chapter 33), soaps or detergents (heading 3401), polishes, creams, or similar preparations (heading 3405), fabric, softeners (heading 3809)1 where the textile material is present merely as a carrying medium. Further, HS code 3307 covers wadding, felt and non-woven, impregnated, coated or covered with perfumes or cosmetics. The HS code 3401, would cover paper, wadding, felt and non-woven impregnated, mated or covered with soap or detergent whether or not perfumed.<br>o Further, as per the explanatory notes to the HSN, the heading 3307 includes wadding, felt and nonwovens impregnated, coated or covered with perfume or cosmetics. Similarly, as per explanatory notes to the HSN, the heading 3401 includes wipes made of paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent, whether or not perfumed or put up for retail sale. <br> o Thus, the wipes of various kinds (as stated above) are classifiable under heading 3307 or 3401 depending upon their constituents as discussed above. Therefore, if the baby wipes are impregnated with perfumes or cosmetics, then the same would fall under HS code 3307 and would attract 18% GST rate. Similarly, if they are coated with soap or detergent, then it would fall under HS code 3401 and would attract 18% GST.<br>CBI&C Circular No. 52126/2018-GST, dated 9-8-2018
Baby wipes:
Baby wipes- Baby wipes are classified on the basis of material and impregnating materials as :<br>o Prior to 15-11-2017, Baby wipes consisting of Paper wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent, whether or not perfumed or put up for retail sale, falls under HS code 3401 and attracts 28% GST. With effect from 15-11-2017 it attracts 18% GST. [Notification No. 41/2017-Central Tax (Rate)] <br>o And those consisting of, wadding, felt and nonwovens impregnated, coated or covered with perfume or cosmetics fall under HS code 3307 and attract 18% GST. [Notification No. 41/2017-Central Tax (Rate)] C. B./. & C. Circular F. No. 332/2/2017-TRU, dated 7-12-2017
Wet Baby Wipes; Wet Face Wipes; Bed and Bath Towels; Shampoo Towels-Shampoo Towels
Shampoo Towels made of spun lace non-woven fabric- classifiable under Heading 3307 or 3401 depending upon their constituents. If these products are impregnated with perfumes or cosmetics, the same would fall under HS Code 3307 and if they are coated with soap or detergent, then it would fall under HS Code 3401, In Re: Ginni Filaments Ltd. 2019 (23) G.S.T.L. 222 (A.A.R. - GST)
Modelling Dough (For Children)
Modelling Dough (For Children) - Heading 9503 is for 'toys', And CTH 3407 covers modelling pastes, foramusement of children. The impugned product being a dough used for amusement of children, the Heading 3407 would be the correct classification. The description against CTH 3407 being applicable to the impugned product, we refrain from engaging ourselves in any exercise of what constitutes a "toy" and whether the impugned product is a "toy". In Re: A. W Faber-Castell (India) Pvt. Ltd. 2018 (16) G.S.T.L. 121 (A.A.R. - GST
Organic Surface-Active Agents:
Organic Surface-Active Agents-Organic surface-active products or preparations or agents fall under heading 3401 or 3402. Soaps; organic surface-active products and preparations for use and soaps. in form of bars, cakes, moulded pieces or shapes falling under heading 3401 [except 3401 30] and attract 18% GST. Prior to 15-11-2017. Other organic surface-active products and preparations falling under sub-heading 3401 30 and organic surface-active agents and preparations falling under heading 3402 attracted 28% GST.With effect from 15-11-2017. Other organic surface-active products and preparations falling under sub-heading 3401 30 and organic surface-active agents and preparations falling under heading 3402 attract 18% GST rate. [Notification No. 41/2017-Central Tax (Rate)] CB.L & C. Circular F. No. 332/2/2017-77W, dated 7-12-2017