Milk HSN Code: Understanding the Classification for Different Milk Types
Milk is one of the most important food products in every household. It is used directly as a drink and also as an input for curd, paneer, sweets and many other products. For GST, milk and milk products are given special treatment so that basic nutrition remains affordable for common people. Knowing the correct milk HSN code helps dairy farmers, milk distributors and retailers file accurate returns.
In GST, milk is classified under the chapter for dairy produce. The HSN code changes based on whether the milk is fresh or concentrated, sweetened or unsweetened and whether it is sold in branded or unbranded form. Businesses must choose the correct line item because the GST rate can be zero or five percent depending on the product.
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What is the HSN Code for Milk
Fresh milk that is not concentrated and not sweetened is normally classified under code 0401. This covers loose milk supplied by dairies as well as poly packed fresh milk for direct consumption. Milk and cream that are concentrated or sweetened, including milk powder and condensed milk, are classified under code 0402. These products are treated differently because they are more processed and have a longer shelf life.
Milk 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
8 Digit HSN Code Classification
| HSN Code | HSN Code Title | GST Rate |
|---|---|---|
| 04011000 | Of a fat content, by weight, not exceeding 1% | 0% |
| 04012000 | Milk fat content 1-6% | 0% |
| 04014000 | Milk: 6-10% fat content | 0% |
| 04015000 | High-Fat Dairy Products | 0% |
| 04021010 | Liquid Milk & Cream (Not Concentrated or Sweetened) | 5% |
| 04021020 | Baby Milk Food (≤1.5% Fat) | 5% |
| 04021090 | Other Milk Powder (≤1.5% Fat) | 5% |
| 04022100 | Unsweetened High-Fat Milk Powder | 5% |
| 04022910 | Concentrated Milk & Cream (Unsweetened) | 5% |
| 04022920 | Concentrated & Sweetened Milk & Cream | 5% |
| 04022990 | Other Milk Powder (>1.5% Fat) | 5% |
| 04029110 | Condensed Milk Without Added Sugar or Sweetening | 12% |
| 04029120 | Yogurt | 12% |
| 04029190 | Non-sweetened milk products | 5% |
| 04029910 | Other | Other | Whole Milk | 5% |
| 04029920 | Other | Other | Condensed Milk | 12% |
| 04029990 | Other | Other | Other | 5% |
| 04031000 | Mozzarella cheese | 0% |
| 04032000 | Yogurt (Non-Frozen) | 5% |
| 04039010 | Other | Butter Milk | 0% |
| 04039090 | Buttermilk, Curd, Whey & Other Fermented Milk Products | 5% |
* GST rates may vary based on the latest GST notifications
Classification of Fresh Milk and Packaged Milk under HSN
Fresh liquid milk supplied in pouches, cans or through tankers is generally covered under the HSN code for milk and cream that are not concentrated and not sweetened. This product is kept at a zero GST rate so that basic milk remains affordable. The same treatment usually applies whether the milk is supplied in loose form or in sealed pouches, as long as it is not processed further.
Packaged milk that is flavoured, sweetened or fortified may fall under a different heading covering milk based drinks. If the product has added sugar, flavours or other ingredients, it is no longer treated as simple fresh milk. In that case, it may attract five percent GST under the heading for milk preparations. Businesses should carefully read the product composition while choosing the HSN code.
How Organic Milk is Classified under HSN Code
Organic milk is produced without the use of synthetic chemicals and with special farming practices. However, for HSN classification it is still treated as milk and cream under code 0401 as long as it is not concentrated or sweetened. The term organic is mainly a marketing label and does not create a separate HSN code by itself.
If organic milk is converted into powder, condensed milk or flavoured milk drinks, it will move to the relevant code for those products. The important point is that classification is based on the physical form and processing level of the milk rather than the farming method.
GST Implications on Milk Products
Fresh milk under code 0401 is generally kept at a zero percent GST rate. This means suppliers do not charge GST on fresh milk. At the same time, they also cannot claim input tax credit on the inputs used to produce that milk. Concentrated and sweetened milk products under code 0402 are usually taxed at five percent, with full input tax credit available.
Flavoured milk drinks and other milk based preparations are also kept at a lower GST rate compared to many other food items. Businesses selling a mix of fresh milk and milk products should keep separate records for each HSN code so that their GST returns are correct and easy to explain during assessment.
