Ladies, gents, and glam lovers of all kinds – the tax gods have finally smiled on us. Under GST 2.0, cosmetics are no longer stuck in the evil 18% tax slab. Nope – they’ve been gracefully demoted to a chill 5% GST rate. Translation? Your lipstick, foundation, blush, and powders are about to become way more pocket-friendly. 🥳
So, let’s spill the chai (and not the foundation) on how much you’ll actually save, which products will give you the most bang for your buck, and what this means for the beauty industry in India.
Quick Breakdown: Old vs. New GST on Cosmetics
Earlier, beauty products were taxed at a hefty 18%, which always made us sigh at checkout. Now, with GST 2.0, the slab has been cut down to just 5%. Here’s how that math looks:
| Product | Price (MRP) | Old GST (18%) | Final Price (Old) | New GST (5%) | Final Price (New) | Savings 💸 |
|---|---|---|---|---|---|---|
| Lipstick | ₹1,000 | ₹180 | ₹1,180 | ₹50 | ₹1,050 | ₹130 |
| Foundation | ₹1,200 | ₹216 | ₹1,416 | ₹60 | ₹1,260 | ₹156 |
| Compact | ₹800 | ₹144 | ₹944 | ₹40 | ₹840 | ₹104 |
| Blush | ₹600 | ₹108 | ₹708 | ₹30 | ₹630 | ₹78 |
| Eyeliner | ₹500 | ₹90 | ₹590 | ₹25 | ₹525 | ₹65 |
👉 Average savings = 13% on your beauty stash. Enough to snag an extra lipstick or sheet mask without guilt. 💃
Why This is a Big Deal
- Affordable Glam for Everyone – Mid-range brands like Lakmé, Maybelline, and L’Oréal suddenly feel lighter on the wallet.
- Luxury Feels Less Sinful – A MAC lipstick or Estée Lauder foundation still burns a hole, but hey, at least it’s a smaller hole now.
- DIY Beauty Gets a Push – With soaps, shampoos, and toiletries also at 5%, your bathroom shelf looks like it’s on sale every day.
- Retailer Marketing Frenzy – Expect banners saying: “Extra 13% GST Savings – Passed On To YOU!” during festive sales.
- Nykaa & Purplle Stocks Rejoice – Cheaper cosmetics = more shopping = booming beauty industry.
Real-World Scenario: What It Means for You
- Your monthly beauty haul (say ₹5,000 worth) now saves you around ₹650. That’s a brunch outing or another eyeliner right there.
- Festive season shopping just got more fun – Diwali, weddings, and shaadis won’t sting as much.
- Even if you’re a student on a budget, the “end of the month broke phase” is a bit less harsh now.
The Catch? (Because There’s Always One 🙃)
- Beauty salon services are still in the 18% GST slab. So your facials, hair spa, and bridal makeup packages remain pricey.
- Premium fragrances & imported cosmetics may still carry import duties, so don’t expect Dior or Chanel to suddenly feel drugstore-level affordable.
Final Thoughts
This GST 2.0 move feels like a mini glow-up for all of us beauty junkies. From daily essentials like compacts and lipsticks to mid-range glam kits, prices are finally becoming realistic. The government basically said: “Go slay, but on a budget.” ✨
So next time you’re browsing Nykaa or strolling into Sephora, remember – your bill just got slimmer. And honestly? That’s the kind of makeup therapy we didn’t know we needed.
CTA: Ready to stock up on your glam kit? 💄 Drop a comment below with your first “GST 2.0 haul” and let’s compare notes. 👇
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Disclaimer:
The information in this article is based on publicly available GST updates and general market analysis. Prices and savings shown are for illustrative purposes only and may vary by brand, retailer, and region. Please check with official GST notifications, your retailer, or a tax professional for the most accurate and up-to-date details.
