Ghee and Butter HSN Code 0405 and GST Rate
Butter, ghee, butter oil and dairy spreads made from milk.
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- HSN code
- 0405
- GST rate
- 5%
- Chapter
- 04: Dairy, eggs and honey
- Before 22 Sep 2025
- 12%
What is the HSN code for ghee and butter?
Ghee and Butter falls under HSN 0405, in chapter 04 (Dairy, eggs and honey).
Ghee is subheading 040590 and butter is 040510; both were cut from 12% to 5% on 22 September 2025. Vanaspati and other vegetable ghee are not dairy products: they are hydrogenated vegetable fats of heading 1516. Ghee based sweets are prepared foods of chapter 21.
| Code | Description |
|---|---|
| 040510 | Butter |
| 040520 | Dairy spreads |
| 040590 | Other fats and oils from milk (ghee, butter oil) |
GST rate on ghee and butter
The GST rate on ghee and butter is 5%. Before 22 September 2025 it was 12%.
| GST rate | Within a state | Between states |
|---|---|---|
| 5% | CGST 2.5% + SGST 2.5% | IGST 5% |
Compare other goods on the GST rates list.
Which HSN digits to write on your invoice
The number of digits depends on your aggregate turnover in the previous financial year.
| Turnover last year | Digits | Write |
|---|---|---|
| Up to Rs 5 crore | 4 on B2B invoices, optional on B2C | 0405 |
| Above Rs 5 crore | 6 on every invoice | 040510, 040520, 040590 |
| Export or import | 8 on the shipping bill or bill of entry | From the Customs Tariff, chapter 04 |
Sample GST invoice line for ghee and butter
Here is how a line for ghee and butter looks on a tax invoice within one state: 12 × litre tin at Rs 580.00 each, taxed at 5%. The figures are an example, not a market price.
| Item | HSN | Qty | Rate (Rs) | Taxable (Rs) | CGST (Rs) | SGST (Rs) | Total (Rs) |
|---|---|---|---|---|---|---|---|
| Ghee and Butter | 0405 | 12 × litre tin | 580.00 | 6,960.00 | 174.00 | 174.00 | 7,308.00 |
Sold to a buyer in another state, the same line carries IGST of Rs 348.00 instead of CGST and SGST. Make the full invoice with the GST invoice format: it fills in the tax split, round off and amount in words.
Chapter 04 at a glance
Chapter 04 (Dairy, eggs and honey) covers: Milk, cream, curd, butter, ghee, cheese, paneer, birds' eggs and natural honey.
Other pages in chapter 04
Related HSN codes
Products often bought, sold or invoiced together with ghee and butter:
Questions fréquentes
What is the HSN code for ghee and butter?
Ghee and Butter falls under HSN 0405: butter, ghee, butter oil and dairy spreads made from milk. Common 6 digit codes are 040510 for butter and 040520 for dairy spreads.
What is the GST rate on ghee and butter?
5%: CGST 2.5% plus SGST 2.5% on a sale within a state, or IGST 5% on a sale between states. It was 12% until 21 September 2025.
How many digits of the ghee and butter HSN code go on a GST invoice?
If your aggregate turnover in the previous financial year was up to Rs 5 crore, write the 4 digit code 0405 on B2B invoices (optional on B2C invoices). Above Rs 5 crore, write 6 digits, such as 040510, on every invoice. Shipping bills and bills of entry need the full 8 digit code from the Customs Tariff.
Rates checked on 13 October 2026 against the GST rate notifications in force (GST 2.0 from 22 September 2025). Descriptions are in our own words and are a guide, not a ruling: for a disputed or high value item, check the notification or ask your tax adviser.