GST Rate & HSN Code for Dairy, Eggs, Honey & Animal Products (Chapter 4)

Goods and Services Tax (GST) on dairy foodstuffs can be tricky, especially with the miscellaneous range of items and varying tax rates. But fear not, associated dairy enthusiasts! This comprehensive blog article will equip you with all the indispensable knowledge to make informed purchase decisions.

Since June 2017, India's GST Council has given clear GST rates (NIL, 5%, 12%, 18%, and 28%) linked to HSN codes to harmonize tax transversely in the country. Wondering about milk, eggs, Honey, and animal products? Chapter 4 of the HSN Code clasps the key! Let's explore the GST rate for milk, dairy products, and eggs besides Honey in this article.

What is the HSN Code for Honey?

The HSN code for Honey is 0409. It is a secondhand six-digit code used to classify goods for import and export purposes. The HSN code for Honey falls below Chapter 4 of the HSN system, which deals with dairy products, eggs, Honey, and other edible animal products.

Classification of Honey under HSN Code: Under the HSN code system, Honey is hush-hush based on its processing, composition, and quality. The classification is as follows:

Natural Honey (0409 00 10): Honey that is obtained since bees, extracted by centrifugation, settling, or straining starved of applying any heat, is classified as natural Honey.

Comb Honey (0409 00 20): Honey that is sold through the comb and has not been extracted from the honeycomb is hush-hush as comb honey.

Honey in the Comb (0409 00 90): Honey that is sold through the comb and has been extracted from the honeycomb is classified in place of Honey in the comb.

Artificial Honey (0409 00 91): Honey that is prepared by combining natural honey with sugars or other sweeteners is classified as artificial Honey.

GST Rate and HSN Code

HSN Code	Product Description	GST Rates
401	Pasteurized milk includes separated milk and cream, not including milk that is concentrated, containing sugar or any added sweetening matter, other than UHT milk	NIL
401	Ultra-High Temperature (UHT) Milk	5%
402	Concentrated milk, cream, milk food for babies, skimmed milk powder (excluding condensed milk)	5%
403	Yogurt, Cream, and other acidified or fermented milk and cream	5%
403	Buttermilk; Lassi; Curd	NIL
404	Whey or any other products containing natural milk constituents that are not specified elsewhere	5%
405	Butter, ghee, or derived oil from milk; dairy spreads	12%
406	Branded Paneer or Chena	5%
406	Cheese	12%
407	Fresh birds’ eggs preserved or cooked	NIL
408	Birds’ eggs, fresh that are not in shell, cooked or boiled	5%
409	Branded Honey	5%
409	Natural Honey not including brand name	NIL
410	Other products originated from animal	5%
04029920/04029110	Condensed Milk	12%

Implications of HSN Code for Honey

The HSN code for honey has many implications for both buyers and sellers. Some of the noteworthy implications are:

Trade facilitation: The HSN code for Honey streamlines the job process by providing a standard cataloging system for Honey. This makes it easier for buyers and vendors to identify and classify Honey for trade purposes.

Duty calculation: The HSN code for Honey is used to calculate duties, taxes, and other charges on the import and transfer of Honey. The rate of duty varies based on the type of Honey and its cataloging under the HSN code.

Quality standards: The HSN code for Honey offers guidelines for the quality and composition of Honey. It helps to guarantee that the Honey sold or imported meets the specified quality standards and is safe for human feasting.

Tax on Production and Sale of Milk, Paneer, besides Curd under GST

The GST rate applicable to the production besides the sale of milk, paneer, and curd depends on the specific product besides its classification:

Milk: For producers and vendors of fresh milk, no GST is levied. However, UHT milk, in addition to flavored milk making and sale, attracts the applicable 5% GST.

Paneer and curd: Unbranded paneer, besides curd production and sale, are excused from GST. For branded paneer and curd, a 5% GST is put on both production and sale.

Butter, ghee, cheese, etc.: These products entice a 12% GST at both production and sale stages.

Amendments to Charge GST on Milk, Paneer, Egg.

The current rates remain as follows:

‍Exempt (0% GST): Fresh milk (cow, buffalo, goat), unbranded paneer and curd, buttermilk, and eggs.

5% GST: UHT milk, flavored milk, lassi, wrapped paneer, curd with a brand name, milk powder (except skimmed), and cream.

12% GST: Butter, ghee, cheese, condensed milk, skimmed milk powder.

18% GST: Ice cream and dairy-based desserts.

Conclusion

The GST rates and HSN codes have been prepared based on the author's best understanding and are subject to periodic updates in accordance with current laws. This content is for informational purposes only and does not serve as professional advice or a formal recommendation. Despite careful preparation, faults or omissions may occur. Online Legal India is not liable for any loss or harm resulting from inaccurate or incomplete information in this document.

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Suggested Read: Knife HSN Code and GST Rate - 8208

FAQs

What is the GST rate for eggs?

Exempt (0% GST): Fresh milk (cow, buffalo, goat), unbranded paneer in addition to curd, buttermilk, and eggs. 5% GST: UHT milk, flavored milk, lassi, packaged paneer besides curd with a brand name, milk powder (except skimmed), and cream. 12% GST: Butter, ghee, cheese, condensed milk, skimmed milk powder.

Is honey GST exempt?

A person making NIL-rated or exempted supplies of goods and services, such as fresh milk, honey, cheese, agricultural services, etc. An individual engaged in activities that are not considered as supplies of goods and services, such as funeral services, petroleum products, etc.

What is the GST rate on dairy products?

The GST rate on milk and dairy products varies based on processing and packaging. Fresh and pasteurized milk attracts 0% GST, while UHT milk, skimmed milk powder, and packaged dairy items fall under 5%, 12%, or 18% GST slabs.