Welcome to SMF,
@meruspot !
I haven't found any differences between using various grades of coconut oil in soap. I don't know the market in India (but I guess it's much larger than in cold Europe, where anything coconut is considered “exotic”) – so I can only guess that it really shouldn't matter.
Maybe the better qualities are better used in the kitchen than in soap (like with olive oil).
Low-grade oil (non-edible qualities) can have side effects like off-colour or accelerating trace (common issue with cheap palm oil) – don't start with these. But later on, when you feel safe using them, why not?
Yes, the oil itself. Sadly, nothing of that smell makes it over into the soap. If you want soap smelling like coconut, you'll have to “cheat”, i. e. use coconut FO.
High-coconut soaps with high superfat might have some “goat” smell to them (like rancid or overheated coconut oil), regardless what the original oils smelled like.