0405 HSN Code: Dairy fats and oils

HSN Sub Chapter 0405 represents Dairy fats and oils under GST classification. This code helps businesses identify Dairy fats and oils correctly for billing, taxation, and trade. With HSN Sub Chapter 0405, companies can avoid errors in invoices, simplify compliance, and enable hassle-free import/export of Dairy fats and oils.

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Chapter No	HSN Code	HSN Description	New GST Rate	Old GST Rate
04	0405	Butter and other fats and oils derived from milk; dairy spreads	5%	12%

HSN Code 0405

Chapter: 04

Description: Butter and other fats and oils derived from milk; dairy spreads

New GST Rate: 5% Old GST Rate: 12%

Tariff HSN	Description
04051000	Butter
04052000	Dairy spreads
04059010	Other:Butter oil
04059020	Other: Ghee
04059090	Other:Other

HSN Code 04051000

Butter

HSN Code 04052000

Dairy spreads

HSN Code 04059010

Other:Butter oil

HSN Code 04059020

Other: Ghee

HSN Code 04059090

Other:Other

Wrong HSN codes causing GST errors? BUSY auto-applies the correct code & rate on desktop and mobile.

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Order Number	Description
KAR ADRG 88/2019	Karnataka Co-operative Milk Producers Federation Ltd. (Formerly Known As Kmf) (AAR (Authority For Advance Ruling), Karnataka)

Order No. KAR ADRG 88/2019

Karnataka Co-operative Milk Producers Federation Ltd. (Formerly Known As Kmf) (AAR (Authority For Advance Ruling), Karnataka)

What products are classified under HSN 0405

It includes Dairy fats and oils

Any import/export nuance for Dairy fats and oils?

Exports are zero‑rated (with or without payment of IGST) subject to LUT/refund conditions. Imports may attract customs duties in addition to GST. Keep HSN‑wise description consistent across invoice, shipping bill and BOE.

Does packaging or branding change how GST applies to Dairy fats and oils?

Yes. Many food/agri goods are treated differently when sold as pre‑packaged & labelled retail packs versus loose/open packs. If Dairy fats and oils is sold in small pouches (e.g., 500 g) with an MRP and label, record that on the invoice. Loose bulk bags often follow a different treatment.

Can I claim ITC on inputs and services used for Dairy fats and oils?

If your outward supply of Dairy fats and oils is taxable, ITC is generally available (Sections 16–17) except blocked credits (e.g., personal use, motor vehicles in most cases). For exempt supplies, proportionate reversal is required under Rule 42/43.

How are warranty replacements of Dairy fats and oils handled?

If replacement is without consideration under a pre‑agreed warranty, issue a delivery challan and reference the original invoice/contract. If consideration is charged, raise a tax invoice. Keep serial/lot details for traceability.

Is the composition scheme suitable if I mainly trade Dairy fats and oils?

The composition scheme is optional for eligible small suppliers of goods. You cannot issue tax invoices or collect tax under composition. Check turnover limits and exclusions; evaluate margins and ITC loss before opting in.

Important Disclaimer

The above does not constitute professional advice or a formal recommendation. We recommend consulting a professional tax consultant before acting on the information contained in this piece of content.

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