GST Rate and HSN Code for Animal Origin products

GST rate and HSN code for animal origin products is an important topic for farmers, traders, shop owners, dairy businesses and exporters. If you sell items like milk, eggs, meat, honey, wool or leather, you must know whether the GST applies or not. This guide explains everything in a simple way about animal origin products.

You can refer to the HSN Code List to understand how different products are classified under GST.

What are Animal Origin Products

Animal origin products are items that come directly from animals. These products are usually used for food, clothing or daily needs. Milk comes from cows and buffaloes, eggs comes from hens, meat comes from animals and birds, honey comes from honey bees, wool comes from sheep and leather comes from animal skin.

Under GST, these products are treated differently based on how they are sold. If the product is fresh, loose and not branded, GST is usually not charged. If the same product is fresh, loose and not branded, GST is usually not charged. If the same product is packed, branded or processed, GST may apply.

For updated information, always refer to the official GST portal.

Why HSN Code is Important in GST

HSN code is a number given to every product under GST. This code helps the government understand what product is being sold and how much GST should be charged. Without the correct HSN code, sellers may charge the wrong tax or may face problems during GST filing. Using the right HSN code also helps while creating invoices.

Businesses should understand Input Credit Tax Under GST to reduce the GST they pay on purchases.

HSN Code 01 : Live Animals

Live animals are mostly kept outside GST. This means no GST is charged when live animals are sold. Farmers and traders selling cows, buffaloes, sheep, goats or poultry birds do not need to charge GST in most cases.

PRODUCT	HSN CODE	GST RATE
Live cattle	102	0%
Live sheep and goats	104	0%
Live poultry	105	0%

This exemption helps farmers and small traders continue their work without tax pressure.

HSN Code 02 : Meat and Edible Meat Products

Meat under GST depends on the way it is sold. Fresh meat sold by local butchers without packaging does not charge GST. Frozen meat sold without branding is also GST free. However, when meat is packed, sealed and sold with a brand name, GST is charged.

PRODUCT	HSN CODE	GST RATE
Fresh meat	201	0%
Frozen meat	202	0%
Packaged meat	203	5%

This rule protects small meat sellers while ensuring tax compliance for large brands.

HSN Code 03 : Fish and Aquatic Products

Fish and seafood follow similar GST rules. Fresh fish sold in local markets does not charge GST. Frozen fish sold without a brand name is also GST free. GST applies only when fish is packed, canned or sold under a brand name.

PRODUCT	HSN CODE	GST RATE
Fresh fish	302	0%
Frozen fish	303	0%
Packaged fish	304	5%

This system helps fishermen and small sellers while keeping branded sellers under GST.

HSN Code 04 : Milk, Eggs, Honey and Dairy Products

Milk is one of the most important animal origin products in India. Milk is completely GST free. It does not matter whether milk is sold loose or in packets. Eggs are also GST free, even when sold in trays or cartons. Honey is treated differently. Natural honey sold without branding is gST free. When honey is packed and sold under a brand name, GST at 5 percent is applied.

PRODUCTS	HSN CODE	GST RATE
Milk	401	0%
Eggs	407	0%
Honey	409	0% or 5%

Dairy sellers can relax, but honey brands must follow GST rules.

HSN Code 05 : Other Animal Origin Products

Some animal origin products are not used for food. These include animal hair, bones, horns, feathers and similar items. These products usually charge GST, because they are used for industrial or decorative purposes.

PRODUCT	HSN CODE	GST RATE
Animal hair	501	5%
Bones and horns	506	12%

These products are taxable even if sold loose.

HSN Code 41 : Leather and Hides

Leather is a very common animal origin product used in shoes, bags and belts. Raw hides that are not processed are usually GST free. Once the leather is treated, polished or tuned into goods, GST applies.

PRODUCT	HSN CODE	GST RATE
Raw hides	4101	0%
Processed leather	4104	5% to 12%

Leather businesses must follow GST rules carefully.

GST Rules Based on Packaging and Branding

GST does not depend only on the product. It also depends on how the product is presented. Loose and un branded animal origin products are mostly exempt from GST. Once the same product is packed, labelled and sold as a brand, GST applies.

These rules are clearly mentioned on the Official CBIC GST website.

Conclusion

GST rate and HSN code for animal origin products is easy to understand once the basics are clear. Fresh and natural products are mostly GST free, while branded products charge GST. It’s mandatory to know about HSN code to avoid penalties. Try using digital apps like the Swipe Billing App, which creates invoices instantly.

FAQS

1. Do farmers need GST registration?

Most farmers selling raw animal products do not need GST registration. GST applies only when products are packed.

2. Is GST taken on milk in India?

No, GST is not charged on milk in India. It does not matter whether milk is sold loose or in packets.

3. Can wrong HSN codes cause GST problems?

Yes, using the wrong HSN code can lead to mistakes and even penalties. You will end up facing issues during GST return filing.

4. Can ITC be claimed on animal origin products?

Input Tax Credit (ITC) can usually be claimed only when GST is actually paid on the purchase. Since many animal origin products are GST free, ITC is not available in those cases. ITC can be claimed if the GST is charged, such as on packed or branded animal origin products.

5. Do small shop owners selling animal products need GST billing?

Small shop owners selling fresh and unbranded animal products usually do not need to charge GST. GST billing becomes necessary only when products are branded or packed for sale.

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