Ghee HSN Code for GST Filing
Ghee is an important dairy product in Indian households, sweet shops and food businesses. Understanding the correct ghee HSN code and GST rate helps manufacturers, traders and retailers raise compliant invoices and avoid confusion during GST assessment.
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What is the HSN Code for Desi Ghee and Cow Ghee?
Under GST, ghee is treated as a dairy fat and is classified in chapter 04 which covers milk and milk products. Both desi ghee and cow ghee are typically grouped under heading 0405 which covers butter and other fats and oils derived from milk, including ghee in packed and loose form.
Ghee HSN Code Classification and GST Rates
Here are some commonly used HSN codes and GST rates for this category
| Section | |
|---|---|
| Section No | 1 |
| Section Title | Guide to HSN Section 01 |
| Section Description | LIVE ANIMALS, ANIMAL PRODUCTS |
| Chapter | |
|---|---|
| Chapter No | 4 |
| Chapter Title | Dairy, Eggs, Honey and Animal-Origin Products |
| Chapter Description | Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included |
4 Digit HSN Code Classification
| HSN Code | HSN Code Title | GST Rate |
|---|---|---|
| 0405 | Dairy fats and oils | 5% |
8 Digit HSN Code Classification
| HSN Code | HSN Code Title | GST Rate |
|---|---|---|
| 04051000 | Butter | 12% |
| 04052000 | Dairy Spreads | 12% |
| 04059010 | Other|Butter Oil | 12% |
| 04059020 | Butter, Dairy Spreads & Milk Fats | 12% |
| 04059090 | Butter & Other Milk-Derived Fats and Dairy Spreads | 12% |
* GST rates may vary based on the latest GST notifications
How Does the GST Rate Apply to Different Types of Ghee?
The GST rate for ghee is usually the same for desi ghee and cow ghee when they fall under heading 0405. The rate generally does not change only because the ghee is used for household consumption or in sweets manufacturing. However, the way ghee is packed and branded can decide whether it falls under normal retail supply or some special exemption category.
If ghee is sold in loose form to unregistered consumers it is still normally taxable at the standard rate. You should always verify if any local exemption or concessional rate exists for supplies under specific government schemes before changing the standard rate in your billing system.
Why Are Desi Ghee and Cow Ghee Classified Under Different HSN Codes?
In most cases both desi ghee and cow ghee fall under heading 0405 and do not require separate HSN codes. The difference is usually highlighted only in the product description on the invoice and packing, not in the HSN code itself.
Separate classification may come into question only where a product is specially processed or mixed with other ingredients such as flavoured ghee or fortified ghee. In such cases you should check whether the product still falls under the same heading or moves to a different chapter due to its changed character.
How to Classify Ghee Correctly for GST Returns?
For regular ghee items you should maintain clear item masters with description like desi ghee, cow ghee or industrial ghee and map them to heading 0405 with the standard GST rate. This ensures that every sale invoice, e way bill and e invoice carries the correct ghee HSN code.
While filing GSTR one you should report outward supplies of ghee under the correct HSN code with taxable value and tax amount. Matching of this data with buyers GSTR two and GSTR two B helps in smooth input tax credit flow.
Conclusion
Ghee is generally classified under heading 0405 and attracts 5% GST under the revised slab structure, unless a specific notification prescribes a different rate. Accurate use of ghee HSN code on invoices and returns keeps your tax position clear and reduces the chances of dispute.
Food businesses, super markets and dairies should keep their product masters updated so that every supply of ghee is reported correctly in GST records.
