Shaving Foam and Shaving Cream are not the same products under GST and covered by different rates

Shaving Foam and Shaving Cream are not the same products under GST and covered by different rates

Facts of the Case

• The applicant, McNROE Consumer Products Pvt. Ltd., is engaged in the FMCG business, particularly in the personal hygiene segment, and supplies shaving cream and shaving foam under popular brands.
• Shaving cream is a semi-solid emulsion requiring manual lathering, while shaving foam is an aerosol-based, pre-lathered preparation.
• Both products are used for softening facial hair and facilitating smooth shaving, sharing similar formulation and composition but differing in form and method of application.
• The applicant sought an advance ruling under Section 97(1) of the GST Act on whether shaving foam and shaving cream are the same product classifiable under HSN Code 33071010, and whether 5% GST applies to all products under HSN Code 330710 as per Notification No. 09/2025 – Central Tax (Rate) dated 17.09.2025, effective from 22.09.2025.
• The application was admitted as the questions had not been decided or were pending before any authority under the GST Act.

Contentions of the Parties

Applicant

• Shaving cream and shaving foam are functionally and compositionally identical, differing only in form and method of application.
• Both products serve the same purpose and have similar ingredients and consumer usage.
• Shaving foam should be classified under HSN 33071010 (shaving cream) and be eligible for the concessional GST rate of 5% as per Notification No. 09/2025 – Central Tax (Rate).
• Rule 3(b) of the General Rules for Interpretation and the principle of ejusdem generis support classification based on essential character, not minor differences.
• Excluding shaving foam from the concessional rate would be arbitrary and contrary to legislative intent and past practice under the Central Excise Tariff.
• All products under HSN 330710 should be eligible for the 5% GST rate as per the notification.

Revenue

• No views or submissions were expressed on the merits of the case.

Issues

1. Whether “Shaving Foam” and “Shaving Cream” are the same product and are classified under HSN Code 33071010?
2. Whether 5% GST is to be applied on the supply of all the products falling under HSN Code 330710 as per Notification No. 09/2025 – Central Tax (Rate) dated 17 September 2025, effective from 22 September 2025?

Decision

A. Analysis of the Products and Their Use

• The Authority reviewed the applicant’s submissions and noted that both shaving cream and shaving foam are used for softening facial hair and facilitating smooth shaving, but differ in form and method of application. Shaving cream is a semi-solid emulsion requiring manual lathering, while shaving foam is an aerosol-based, pre-lathered product. Both share similar ingredients but differ in physical form and application. (p4.2)
• The Authority described the three stages of shaving and the types of products used at each stage, noting that shaving soap, shaving cream, shaving gel, and shaving foam are all different in terms of physical properties and application methods, though their basic purpose is the same. Shaving foam is unique in that it is pre-lathered and does not require a brush for application. (p4.4)
• It was observed that, while the basic purpose of shaving cream and shaving foam is the same, their composition, form, and method of application differ. Shaving cream contains a rich emulsion of oils, fatty acids, soaps/surfactants, glycerine, and skin conditioners, while shaving foam contains a liquid soap/detergent base with water, glycerine, and flammable hydrocarbon propellants. (p4.5)
• The Authority found that, chemically, the two are not the same products. In common parlance, shaving cream and shaving foam are not considered the same by consumers or in the market; they are not used interchangeably and differ in packaging, price, and application. (p4.5)

B. Classification under HSN and Customs Tariff Act

• The Authority examined the relevant HSN codes and Customs Tariff Act provisions. Shaving soap (other than shaving cream) is included in Chapter 34 (tariff item 34011120), but is outside the scope of this ruling. (p4.6)
• Shaving cream is included in Chapter 33 (tariff item 33071010), while shaving cream and shaving gel as organic surface-active products for washing the skin are included in Chapter 34 (tariff item 34013012). (p4.6)
• Chapter Note 1(b) of Chapter 33 excludes soap or other products of heading 3401 from Chapter 33. Chapter Note 1(c) of Chapter 34 excludes, inter alia, shaving creams and foams (heading 3307) from Chapter 34. (p4.6)
• The Authority concluded that shaving cream and shaving gel are includible in tariff heading 3307. Shaving foam is a product different from shaving cream, but both are includible in HSN code 3307. (p4.7)
• Within tariff heading 3307, shaving cream is covered by tariff item 33071010, while other pre-shave, shaving, or after-shave preparations (including shaving foam) are covered by tariff item 33071090. (p4.7)

C. GST Notification and Rate Structure

• The Authority reviewed Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 09/2025 – Central Tax (Rate) dated 17.09.2025. Schedule I (entry 249) covers shaving cream, shaving lotion, and aftershave lotion under HSN 3307, while Schedule II (entry 64) covers other pre-shave, shaving, or after-shave preparations, excluding shaving cream, shaving lotion, and aftershave lotion. (p4.8)
• It was held that shaving cream (tariff item 33071010), shaving lotion, and aftershave lotion (both under 33071090) are to be taxed at 2.5% CGST + 2.5% SGST as per Schedule I, while other pre-shave, shaving, or after-shave preparations, including shaving foam (tariff item 33071090), are to be taxed at 9% CGST + 9% SGST as per Schedule II. (p4.8)

D. Ruling on the Questions Raised

• On the first question, the Authority ruled that shaving foam and shaving cream are not the same product. Shaving cream is covered by tariff item 33071010, while shaving foam is covered by tariff item 33071090. (Ruling 1)
• On the second question, the Authority ruled that 5% GST is not applicable to all products under HSN Code 330710. Only shaving cream, shaving lotion, and aftershave lotion are eligible for the concessional rate; other products, including shaving foam, are taxable at 18% (9% CGST + 9% SGST). (Ruling 2)

Conclusion

The Authority concluded that shaving foam and shaving cream are distinct products for GST classification and rate purposes. Shaving cream is classifiable under tariff item 33071010 and eligible for the concessional GST rate of 5%, while shaving foam is classifiable under tariff item 33071090 and taxable at 18%. The applicant’s request to treat shaving foam as shaving cream and to apply the concessional rate was rejected.

Disposition

The application is rejected to the extent of the applicant’s claim that shaving foam and shaving cream are the same product and that all products under HSN Code 330710 are eligible for the 5% GST rate. The impugned classification and rate sought by the applicant are not upheld.

Source: In re: Mcnroe Consumer Products Pvt. Ltd., (2026) taxcode.in 08 AARGST