--- title: "0405 HSN Code | HSN Code for Dairy fats and oils in India" description: "Know more about 0405 HSN Code with BUSY Accounting - HSN Tariff, GST Rates and case laws related to chapter 0405 covering Dairy fats and oils." canonical: "https://busy.in/hsn/sub-chapter-0405/" --- # HSN Sub-chapter 0405: Dairy fats and oils Butter and other fats and oils derived from milk; dairy spreads Part of [Chapter 04: Dairy, Eggs, Honey and Animal-Origin Products](https://busy.in/hsn/chapter-04/). - Current GST rate: 5% - Earlier GST rate: 12% ## HSN codes | Code | Title | | --- | --- | | 04051000 | [Butter](https://busy.in/hsn/hsn-04051000/) | | 04052000 | [Dairy Spreads](https://busy.in/hsn/hsn-04052000/) | | 04059010 | [Other\|Butter Oil](https://busy.in/hsn/hsn-04059010/) | | 04059020 | [Butter, Dairy Spreads & Milk Fats](https://busy.in/hsn/hsn-04059020/) | | 04059090 | [Butter & Other Milk-Derived Fats and Dairy Spreads](https://busy.in/hsn/hsn-04059090/) | ## Frequently asked questions ### 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. ## India's trade performance: HSN Sub-Chapter 0405 (FY 2024-25) Source: TradeStat EIDB, Ministry of Commerce & Industry. Values in ₹ Crore (FY 2018-19 to FY 2024-25). - Exports: ₹3,222 Cr (+120.18% YoY) — 0.0870% of India's total exports - Imports: ₹21 Cr (+40.55% YoY) — 0.0003% of India's total imports - Trade balance: ₹3,201 Cr (Surplus); surplus rank #98 of 1233 sub-chapters - Share of Chapter 04: 44.49% of its exports; import side 5.30% - Rank within Chapter 04: #1 of 10 by export value; import-side #5 ### Key metrics - Export CAGR: 14.53% (FY 2018-19 to FY 2024-25, 7 fiscal years) - National export rank: #193 of 1233 sub-chapters by export value (FY 2024-25) - Peak growth year: +120.18% in FY 2024-25 - Contribution to Ch. 04: 44.49% of its exports (FY 2024-25) ## India export-import trade statistics: HSN Sub-Chapter 0405 7-year export and import data, FY 2018-19 to FY 2024-25, in ₹ Crore. Source: Ministry of Commerce & Industry, TradeStat EIDB. | FY | Exports (₹ Cr) | Exp share | Exp YoY | Exp % of Ch. 04 | Imports (₹ Cr) | Imp share | Imp YoY | Imp % of Ch. 04 | Trade balance | Exp rank | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | FY 2018-19 | 1,427.30 | 0.0622% | — | 37.83% | 14.27 | 0.0004% | — | 6.24% | +1,413.03 | #230 | | FY 2019-20 | 895.83 | 0.0406% | −37.24% | 35.79% | 13.13 | 0.0004% | −7.99% | 4.92% | +882.70 | #309 | | FY 2020-21 | 759.17 | 0.0353% | −15.26% | 29.13% | 23.11 | 0.0008% | +76.01% | 9.29% | +736.06 | #354 | | FY 2021-22 | 1,472.50 | 0.0469% | +93.96% | 31.79% | 6.29 | 0.0001% | −72.78% | 2.80% | +1,466.21 | #285 | | FY 2022-23 | 1,196.27 | 0.0330% | −18.76% | 24.42% | 16.40 | 0.0003% | +160.73% | 4.50% | +1,179.87 | #347 | | FY 2023-24 | 1,463.30 | 0.0404% | +22.32% | 28.28% | 14.60 | 0.0003% | −10.98% | 2.92% | +1,448.70 | #315 | | FY 2024-25 | 3,221.89 | 0.0870% | +120.18% | 44.49% | 20.52 | 0.0003% | +40.55% | 5.30% | +3,201.37 | #193 | - CAGR (7-year): exports 14.53%/yr, imports 6.24%/yr (consistently Surplus) ## Key trade insights: HSN Sub-Chapter 0405 export-import analysis ### Consistent export growth: 14.53% CAGR over 7 years India's exports under HSN Sub-Chapter 0405 have grown at a compound annual rate of 14.53% over 7 fiscal years, rising from ₹1,427.30 Crore in FY 2018-19 to ₹3,221.89 Crore in FY 2024-25. ### HSN Sub-Chapter 0405 ranked #193 among all 1233 sub-chapters by export value In FY 2024-25, HSN Sub-Chapter 0405 ranks #193 out of 1233 sub-chapters by total export value. Within Chapter 04, it ranks #1 of 10. By trade surplus, it ranks #98 of 1233. ### FY 2024-25 was the strongest growth year for HSN Sub-Chapter 0405 exports The strongest single-year export movement for HSN Sub-Chapter 0405 was recorded in FY 2024-25, when exports surged by 120.18% over the prior year. ### India maintains a trade surplus of ₹3,201.37 Crore in HSN Sub-Chapter 0405 goods In FY 2024-25, India's exports of ₹3,221.89 Cr exceeded imports of ₹20.52 Cr, resulting in a trade surplus of ₹3,201.37 Crore — ranking #98 of 1233 by surplus magnitude. ### Import growth of 6.24% CAGR signals stable import dependency for Dairy fats and oils India's imports under HSN Sub-Chapter 0405 have grown at 6.24% CAGR, reaching ₹20.52 Crore in FY 2024-25. ### HSN Sub-Chapter 0405 contributes 44.49% of Chapter 04 exports — ranked #1 Among the 10 sub-chapters under Chapter 04, HSN Sub-Chapter 0405 ranks #1 by export value — accounting for 44.49% of the chapter's total exports in FY 2024-25. On the import side, it holds 5.30% share (rank #5). ## Related Sub-Chapters in Chapter 04 Ranked by export value (FY 2024-25). | Rank | HSN Sub-Chapter | Exports (FY 2024-25) | | --- | --- | --- | | #1 | HSN Sub-Chapter 0405: Dairy fats and oils (this hsn sub-chapter) | ₹3,222 Cr | | #2 | [HSN Sub-Chapter 0409: Natural honey](https://busy.in/hsn/sub-chapter-0409/) | ₹1,750 Cr | | #3 | [HSN Sub-Chapter 0407: Birds’ eggs](https://busy.in/hsn/sub-chapter-0407/) | ₹813 Cr | | #4 | [HSN Sub-Chapter 0406: Cheese & curd](https://busy.in/hsn/sub-chapter-0406/) | ₹495 Cr | | #5 | [HSN Sub-Chapter 0408: Birds’ eggs, fresh/dried, preserved](https://busy.in/hsn/sub-chapter-0408/) | ₹495 Cr | | #6 | [HSN Sub-Chapter 0402: Ground-nuts & fractions](https://busy.in/hsn/sub-chapter-0402/) | ₹263 Cr | | #7 | [HSN Sub-Chapter 0401: Unconcentrated milk & cream](https://busy.in/hsn/sub-chapter-0401/) | ₹146 Cr | | #8 | [HSN Sub-Chapter 0403: Yogurt, Milk & Cream](https://busy.in/hsn/sub-chapter-0403/) | ₹38 Cr | | #9 | [HSN Sub-Chapter 0404: Whey & milk products, sweetened](https://busy.in/hsn/sub-chapter-0404/) | ₹18 Cr | | #10 | [HSN Sub-Chapter 0410: Edible insects & products](https://busy.in/hsn/sub-chapter-0410/) | ₹3 Cr | ## Other sub-chapters | Code | Title | | --- | --- | | 0401 | [Unconcentrated milk & cream](https://busy.in/hsn/sub-chapter-0401/) | | 0402 | [Ground-nuts & fractions](https://busy.in/hsn/sub-chapter-0402/) | | 0403 | [Yogurt, Milk & Cream](https://busy.in/hsn/sub-chapter-0403/) | | 0404 | [Whey & milk products, sweetened](https://busy.in/hsn/sub-chapter-0404/) | | 0406 | [Cheese & curd](https://busy.in/hsn/sub-chapter-0406/) | | 0407 | [Birds’ eggs](https://busy.in/hsn/sub-chapter-0407/) | | 0408 | [Birds’ eggs, fresh/dried, preserved](https://busy.in/hsn/sub-chapter-0408/) | | 0409 | [Natural honey](https://busy.in/hsn/sub-chapter-0409/) | | 0410 | [Edible insects & products](https://busy.in/hsn/sub-chapter-0410/) |