New GST on Dairy Products: What’s Taxable Under GST
- GST on dairy products depends on the type of product, HSN classification, and whether the product is pre-packaged and labelled.
- Fresh milk in its applicable exempt category is exempt from GST, while taxable dairy products attract GST as per applicable GST provisions.
- Pre-packaged and labelled dairy products such as curd, paneer, butter, ghee, cheese, and other milk products may attract GST based on their classification.
- Ice cream and similar frozen dairy desserts attract 5% GST under the revised GST structure, based on applicable classification.
- Businesses can claim eligible Input Tax Credit on taxable dairy products, subject to GST conditions.
Dairy products are a part of everyday life such as milk, cheese, butter, curd, and more. But when it comes to taxation, do all dairy items attract GST? The answer depends on the product and how it is processed or packaged. In this blog, we’ll break down the dairy products gst rate, covering everyday items sold in stores and markets across India.
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Is GST Applicable on Dairy Products?
Yes, many dairy products fall under GST, but not all. Some items like milk are exempt, while others like cheese and flavored milk are taxable. The gst for dairy products varies depending on:
- Whether the product is fresh or processed
- Whether it is sold loose or packaged
- Whether it is branded or unbranded
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New GST Rate on Dairy Products in India
The dairy products GST rate depends on the type of product, HSN classification, and applicable GST provisions. Basic milk products may be exempt, while several processed dairy products attract 5% GST under the revised GST structure.
GST Rates on Common Dairy Products
| Dairy Product | New GST Rate (After 22 Sep 2025) |
Old GST Rate (Before 22 Sep 2025) |
|---|---|---|
| Fresh milk | 0% | 0% |
| Pasteurised milk | 0% | 0% |
| UHT milk | 0% | 5% |
| Curd, lassi, buttermilk | 0% or 5% | 0% or 5% |
| Paneer / chhena, pre-packaged and labelled | 0% | 5% |
| Butter and other dairy fats, including ghee and dairy spreads | 5% | 12% |
| Cheese | 5% | 12% |
| Condensed milk | 5% | 12% |
| Beverages containing milk / milk-based beverages | 5% | 12% |
| Ice cream | 5% | 18% |
Dairy Product
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Dairy Product
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Dairy Product
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Dairy Product
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Dairy Product
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Dairy Product
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Dairy Product
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Dairy Product
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Dairy Product
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
Dairy Product
New GST Rate
(After 22 Sep 2025)
Old GST Rate
(Before 22 Sep 2025)
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GST on Dairy Products in India: Key Highlights
- GST on dairy products depends on the product type, HSN classification, and applicable GST provisions.
- Fresh milk and certain basic dairy products may be exempt from GST, subject to applicable conditions.
- Processed dairy products like butter, ghee, cheese, and other milk products attract GST as per their classification.
- Ice cream and other dairy preparations are taxed based on their applicable HSN classification.
- Ice cream attracts 5% GST under the revised GST structure
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GST Compliance for Dairy Businesses
- Register for GST if your turnover exceeds ₹40 lakh (₹20 lakh in some states).
- Apply the correct GST rate based on the product and packaging.
- Issue GST-compliant invoices.
- File regular GST returns.
Proper classification and invoicing help avoid penalties and keep your business GST-compliant.
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How to Calculate GST on Dairy Products
After 22 Sep 2025, many common dairy products fall under 0% or 5% GST, depending on the product type, HSN classification, and applicable GST provisions.
Example 1: Fresh milk at 0%
Suppose the taxable value of fresh milk is Rs 2,000.
GST = 2,000 × 0% = Rs 0
Final Invoice Value = Rs 2,000
Example 2: Ghee at 5%
Suppose the taxable value of ghee is Rs 10,000.
GST = 10,000 × 5% = Rs 500
Final Invoice Value = Rs 10,500
Example 3: Cheese at 5%
Suppose the taxable value of cheese is Rs 4,000.
GST = 4,000 × 5% = Rs 200
Final Invoice Value = Rs 4,200
Input Tax Credit on Dairy Products
Businesses can claim Input Tax Credit (ITC) on the GST paid for packaging, transportation, machinery, and services related to the sale of taxable dairy products.
No ITC is allowed if you’re dealing only in exempt items like unpackaged milk or curd.
Conclusion
The gst on dairy products in india depends on the product type, HSN classification, and applicable GST provisions. While applicable categories of milk, curd, and buttermilk may be exempt, taxable dairy products such as cheese, butter, ghee, and ice cream attract GST as per their classification.
For businesses, understanding the correct dairy product GST rate helps ensure proper invoicing and compliance.
