The milk hsn code is 0401, and fresh, pasteurised and UHT milk are nil rated, so no GST is charged on them. Paneer and chena are also nil, whether sold loose or in a packet. Ghee, butter, cheese, milk powder and condensed milk are 5%, and curd, lassi and buttermilk are nil when loose but 5% when pre-packaged and labelled.
The reform made dairy cheaper: ghee, butter and cheese moved from 12% to 5%, and UHT milk from 5% to nil. This page lists every dairy code, a dairy's sample bill and the rules for packed products. More groceries are on the food items hub.
Milk and dairy: codes and GST rates
Item / HSN / GST- Fresh milk and pasteurised milkNilIncluding toned and double toned
- UHT milkNilLong life milk
- Curd, lassi, buttermilk, looseNilNot pre-packaged
- Curd, lassi, buttermilk, pre-packaged and labelled5%Packed dairy drinks
- Paneer and chenaNilLoose or pre-packaged
- Cheese5%Other than paneer
- Butter, ghee and dairy spreads5%Moved down from 12%
- Milk powder and condensed milk5%Concentrated or sweetened
- Yoghurt, cream and flavoured milk products5%Fermented products
- Whey5%Concentrated or not
Quick facts
HSN heading
0401: milk and cream, not concentratedFresh and UHT milk
NilGhee and butter
0405 at 5% (2.5% CGST + 2.5% SGST)Paneer
Nil, even when packedDigits to print
4 digits up to Rs 5 crore turnover, 6 aboveRate before the reform
Ghee, butter and cheese 12%; UHT milk 5%
Milk hsn code and gst rate for each dairy item
| Item | HSN | GST |
|---|---|---|
| Fresh milk, toned, full cream | 0401 | Nil |
| UHT and long life milk | 0401 | Nil |
| Fresh cream | 0401 | Nil |
| Milk powder, skimmed or whole | 0402 | 5% |
| Condensed milk | 0402 | 5% |
| Curd, lassi, chaach (loose) | 0403 | Nil |
| Curd, lassi, chaach (pre-packaged and labelled) | 0403 | 5% |
| Yoghurt, flavoured yoghurt | 0403 | 5% |
| Whey | 0404 | 5% |
| Butter | 0405 10 | 5% |
| Ghee | 0405 90 | 5% |
| Paneer, chena | 0406 | Nil |
| Cheese | 0406 | 5% |
Ghee hsn code and gst rate
Ghee and butter oil fall under 0405 90, butter under 0405 10, and dairy spreads under 0405 20. All are 5% after the reform. A 1 litre ghee pack with a taxable value of Rs 600 now carries Rs 30 GST instead of Rs 72.
Paneer hsn code and gst on paneer
Paneer and chena are in 0406 with cheese, but they have a separate nil entry that applies whether or not they are pre-packaged and labelled. Cheese, including processed cheese and mozzarella, stays at 5%.
Curd hsn code and the packed rule
Curd, lassi and buttermilk under 0403 are nil when sold loose. When they are pre-packaged and labelled for retail sale, they are 5%. Flavoured yoghurt and similar products are 5%. Ice cream is a separate heading; see ice cream.
Dairy invoice example
Dairy supply to a sweet shop: Toned milk, HSN 0401, 500 litres, Rs 27,500, Nil. Ghee, HSN 0405 90, 20 kg, Rs 12,000, GST 5% Rs 600. Paneer, HSN 0406, 30 kg, Rs 10,500, Nil. Total Rs 50,600.
A dairy that sells mostly nil rated milk must reverse credit on inputs in the ratio of nil rated sales. A milk distributor dealing only in fresh milk and paneer makes only nil rated supplies and need not register for GST on those sales alone. Cattle feed is on the cattle feed page.
Butter paper and milk products in other chapters
Butter paper is greaseproof paper under 4806 at 18%, not a dairy item. Milk based sweets such as peda and barfi are sweetmeats under 2106 at 5%; see chocolate and sweets. Malted milk drinks and milk food for babies are under 1901 at 5%.
Dairy rates above are a broad summary of how milk products are treated now. Packing and labelling decide the rate for some items, so check the definitions and entries on the GST portal, and ask a GST practitioner or chartered accountant before treating a packed product as nil.
Frequently asked questions
Is there GST on milk?
No. Fresh, pasteurised and UHT milk under 0401 are nil rated.
What is the ghee hsn code and gst rate?
Ghee is 0405 90 at 5%.
What is the paneer gst rate?
Paneer and chena are nil rated, loose or pre-packaged.
Which code and rate apply to curd?
Curd is 0403. Sold loose it carries no GST; in a labelled retail pack it is 5%.
What is the butter gst rate?
Butter under 0405 10 is 5%.