HSN Code 0405: Butter and other fats derived from milk
HSN code 0405 classifies butter and other fats derived from milk under India's GST system. GST rate: 5%.
GST Rate Breakdown
- GST Rate: 5%
- CGST + SGST (intra-state): 2.5% + 2.5%
- IGST (inter-state): 5%
Rate reflects the GST 2.0 structure effective 22 September 2025 (slabs 0%, 5%, 18%, 40%). Some items vary by price or type, so confirm the current rate on the official GST portal before invoicing.
The 5% slab covers daily-use items and essentials
The 5% slab covers daily-use items and essentials. Butter and other fats derived from milk sits in this bracket, keeping prices low for consumers. Full ITC available.
Sample Calculation for Butter and other fats derived from milk
- Taxable value: ₹10,000
- GST (5%): ₹500
- Intra-state: ₹250 CGST + ₹250 SGST
- Inter-state: ₹500 IGST
- Total: ₹10,500
When to Use HSN Code 0405
Use HSN code 0405 on every tax invoice for butter and other fats derived from milk. Businesses above ₹5 crore turnover must use the full 6-digit code. E-invoicing requires HSN/SAC on every line item.
FAQs about HSN 0405
What is HSN code 0405?
HSN code 0405 classifies butter and other fats derived from milk under India's GST system. The applicable GST rate is 5%.
What is the GST rate for Butter and other fats derived from milk?
Butter and other fats derived from milk attracts 5% GST. For intra-state sales: 2.5% CGST + 2.5% SGST. For inter-state: 5% IGST.
Is Butter and other fats derived from milk exempt from GST?
No. Butter and other fats derived from milk attracts 5% GST on every taxable sale.