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May 27, 2025

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GST Rates and HSN Code 104 for Live Sheep, Goats

Throughout India, the Goods and Services Tax (GST) has drastically transformed existing tax procedures. Through GST the system of indirect taxation has been simplified since goods and services now require specific tax slabs and HSN (Harmonized System of Nomenclature) codes. Correct knowledge of HSN Code 104 and GST rates represents essential requirements for livestock trading companies that deal with live sheep and goats for both tax compliance and financial planning purposes.

This comprehensive guide contains all the necessary information regarding GST rates for live sheep and goats as well as details about HSN Code 104 classification and business implications.

What is HSN Code 104?

HSN code 104 belongs to Chapter 1 of the GST tariff system that regulates live animals as a classification. HSN Code 104 specifically refers to:

Live Sheep

Live Goats

HSN codes are internationally recognized and help systematically classify goods for taxation purposes.

HSN Code and GST Rate for 104: Live Sheep and Goats

The GST framework specifies that HSN code 104 belongs to Chapter 1 which governs live animals. The HSN code 104 exists for live sheep and goats to enable their taxable classification when the law applies.

HSN Code	Description	Rate (%)	CESS (%)
104	Live Sheep and Goats	0	0
0104 1010	Live Sheep and Goats – Sheep, Including Lamb for Breeding Purpose	0	0
0104 1090	Live Sheep, Goats and others	0	0
0104 2000	Goats	0	0

As per the current GST regulations:

Live sheep and goats under HSN code 104 attract 0% GST.

Due to the legal framework of GST, live sheep and goat products have been categorized as tax-free commodities, thus they are beyond GST taxation boundaries in India.

Why are Live Sheep and Goats Exempt from GST?

GST does not apply to live sheep and goats for four primary reasons:

Agricultural and dairy businesses utilize livestock as an essential economic asset during their operation.

When implementing GST for taxation, there could be higher expenses for farmers that might threaten their economic survival.

The government pursues animal husbandry development through reduced taxation of related operations.

The need for food security relies heavily on sheep and goat meat and dairy production.

Input Tax Credit (ITC) for Livestock Businesses

Because GST applies exclusively to live sheep and goats, all related input expenses, including Input Tax Credit (ITC), become unclaimable by businesses partaking in this trade:

Animal feed

Transportation

Veterinary Services

Breeding programs

This results in higher operational costs, which businesses often offset through pricing strategies.

Impact of GST on the Livestock Industry

While the exemption of GST on live sheep and goats is beneficial, some indirect effects need consideration:

Advantages

No tax burden on farmers and small traders.

Lower livestock prices for consumers.

Encouragement of sheep and goat farming.

Challenges

Inability to claim ITC increases operational costs.

Taxation on other livestock-related services and inputs.

Need for better clarity on tax compliance in the livestock sector.

HSN Code Structure for Live Animals

HSN contains a broad set of classifications for live animals which covers:

HSN Code 101: Live horses, asses, mules and hinnies.

HSN Code 102: Live bovine animals.

HSN Code 103: Live swine (pigs).‍

HSN Code 104: Live sheep and goats.

The tax and trade regulatory system for the livestock sector functions through the implementation of standard classification categories.

Difference Between Live Animals and Processed Animal Products Under GST

GST regulations do not apply to live animals of sheep and goats, but processed animal products like meat and wool together with dairy products are subject to GST at different taxation levels.

GST on Processed Animal Products:

Meat of Sheep or Goat (Fresh or Frozen) - HSN Code 204: 5% GST

Wool (Sheep or Goat) - HSN Code 5101: 5% GST

Goat/Sheep Milk - HSN Code 0401: Exempt from GST

Businesses dealing in both live and processed animal products must be aware of these differences to ensure proper tax compliance.

Compliance and Documentation for Livestock Trade

Although GST is not applicable to live sheep and goats, businesses dealing in livestock must maintain proper records, including:

Purchase and sales invoices

Transportation records

Breeding and health certificates

Trade agreements and licensing documents

These records help ensure smooth trade operations and compliance with other taxation or trade laws.

Key Takeaways

HSN Code 104 covers live sheep and goats.

GST rate on live sheep and goats is 0%, making them tax-exempt.

Farmers and traders benefit from GST exemption, but they cannot claim ITC.

Proper documentation is essential for smooth trade operations.

Government policies aim to support the livestock sector through exemptions and incentives.

Conclusion

Businesses and livestock traders, as well as farmers, need to learn GST information and HSN code 104 for live sheep and goats. The rural economy benefits from the GST exemption even though businesses face challenges due to the lack of Input Tax Credit benefits. A successful operation in the livestock industry requires both tax rule adherence and proper documentation maintenance.

Business decision makers will benefit from staying connected to industry resources together with government notifications to obtain up-to-date information about GST and taxation developments.

To grow your livestock trading business further, the following blog about Cattle Feed HSN Code and GST Rate: A Detailed Guide is a MUST READ!

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