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 purposes. With HSN Sub Chapter 0405, companies can avoid errors in invoices, simplify compliance, and enable hassle-free import/export of Dairy fats and oils.

Live Demo Available Today

Experience the power of Expert Accounting

Join our guided walkthrough to see how BUSY can transform your business operations.

Trusted by 6,00,000+ Users
4.6 Google Rating
+91
expand_more

* No credit card required

New GST Rate for HSN Code 0405

GST Rate for Dairy fats and oils under HSN Code 0405. Understand current tax rates, exemptions, and legal classifications to ensure accurate billing and GST filing.

Chapter No

04

HSN Code

0405

HSN Description

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

New GST Rate

5 %
Essential

Old GST Rate

12 %

Tariff HSN Codes under HSN Sub Chapter 0405

Following tariff HSN codes fall under Dairy fats and oils.

Tariff HSN

04051000

Description

Butter

Tariff HSN

04052000

Description

Dairy spreads

Tariff HSN

04059010

Description

Other:Butter oil

Tariff HSN

04059020

Description

Other: Ghee

Tariff HSN

04059090

Description

Other:Other

India’s Trade Performance — HSN Sub-Chapter 0405 in FY 2024-25

TradeStat EIDB — Ministry of Commerce & Industry FY 2018-19–FY 2024-25 Values in ₹ Crore

India’s Exports

FY 2024-25

₹3,222 Cr

+120.18% vs FY 2023-24

0.0870% of India’s total exports

India’s Imports

FY 2024-25

₹21 Cr

+40.55% vs FY 2023-24

0.0003% of India’s total imports

Trade Balance

FY 2024-25

₹3,201 Cr

Trade Surplus

Surplus rank #98 of 1233 subchapters

% of Chapter 04

FY 2024-25

44.49%

Share of Chapter 04’s total exports in FY 2024-25

Import side: 5.30% of Chapter 04’s imports

Rank Within Chapter 04

FY 2024-25

#1 of 10

Position by export value among subchapters in Chapter 04

Import-side rank: #5 of 10

At a glance

14.53%

Export CAGR

FY 2018-19 → FY 2024-25 · 7 fiscal years

#193

National Export Rank

of 1233 subchapters by export value, FY 2024-25

+120.18%

Peak Growth Year

FY 2024-25 · strongest single-year move

44.49%

Contribution to Ch. 04

Share of Chapter 04 exports in FY 2024-25

India Export-Import Trade Statistics for 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 2018-19 Exp. Rank #230

Balance

+1,413.03

Exports

1,427.30 ₹ Cr

0.0622% share

— YoY

37.83% of Ch. 04

Imports

14.27 ₹ Cr

0.0004% share

— YoY

6.24% of Ch. 04

FY 2019-20 Exp. Rank #309

Balance

+882.70

Exports

895.83 ₹ Cr

0.0406% share

−37.24% YoY

35.79% of Ch. 04

Imports

13.13 ₹ Cr

0.0004% share

−7.99% YoY

4.92% of Ch. 04

FY 2020-21 Exp. Rank #354

Balance

+736.06

Exports

759.17 ₹ Cr

0.0353% share

−15.26% YoY

29.13% of Ch. 04

Imports

23.11 ₹ Cr

0.0008% share

+76.01% YoY

9.29% of Ch. 04

FY 2021-22 Exp. Rank #285

Balance

+1,466.21

Exports

1,472.50 ₹ Cr

0.0469% share

+93.96% YoY

31.79% of Ch. 04

Imports

6.29 ₹ Cr

0.0001% share

−72.78% YoY

2.80% of Ch. 04

FY 2022-23 Exp. Rank #347

Balance

+1,179.87

Exports

1,196.27 ₹ Cr

0.0330% share

−18.76% YoY

24.42% of Ch. 04

Imports

16.40 ₹ Cr

0.0003% share

+160.73% YoY

4.50% of Ch. 04

FY 2023-24 Exp. Rank #315

Balance

+1,448.70

Exports

1,463.30 ₹ Cr

0.0404% share

+22.32% YoY

28.28% of Ch. 04

Imports

14.60 ₹ Cr

0.0003% share

−10.98% YoY

2.92% of Ch. 04

FY 2024-25 Exp. Rank #193

Balance

+3,201.37

Exports

3,221.89 ₹ Cr

0.0870% share

+120.18% YoY

44.49% of Ch. 04

Imports

20.52 ₹ Cr

0.0003% share

+40.55% YoY

5.30% of Ch. 04

CAGR · 7-Year

Exports

14.53% /yr

Imports

6.24% /yr

Consistently Surplus
Chapter 04 total

reference, FY 2024-25

Export

₹7,242.47 Cr

Import

₹387.11 Cr

Trade Balance

+6,855.36

Peak export growth year Latest available data Not available YoY = change vs previous FY

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 Subchapters by Export Value

In FY 2024-25, HSN Sub-Chapter 0405 ranks #193 out of 1233 subchapters 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 subchapters 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).

Stop worrying about HSN & TAX compliance

BUSY auto-applies the correct HSN codes & GST rates, ensuring 100% error-free billing every single time.

Automatic Updates
Error-free GSTR
6,00,000+ Happy Users
+91
expand_more

* No credit card required

Frequently Asked Questions

Clear answers to common queries about HSN Sub Chapter 0405 and GST compliance.

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.

Explore More HSN Codes from Chapter 04