Goods and Services Tax (GST) is an indirect tax or consumption tax charged in India on the supply of goods and services.
GST council has fixed different GST rates for different products and service in 2017 under the GST regime. These are divided into five tax slabs for collection of tax – 0%, 5%, 12%,18% and 28%.
There are about 5,000 commodity groups, each identified by a six-digit HSN code, arranged in a lawful and logical way to classify goods from all over the World in a well-defined and uniform manner.
HSN code and GST rate for Dairy products which comes under the chapter – 4 of HSN code. Let us now discuss the GST rate on various dairy products.
The following Dairy Products are under 0% (Nil) GST rate
Fresh milk and pasteurised milk (separated milk, milk and cream which is neither concentrated nor containing added sugar or other sweetening matter excluding Ultra High Temperature (UHT) milk), Curd, Lassi, Buttermilk, Chena or paneer other than packed up in unit containers with a registered brand name, Eggs (Birds’ eggs, in shell, Fresh, preserved or cooked), Natural honey except the one packed in unit containers with a registered brand name.￼ These all products are GST exempted.
Also Read: Impact of GST on Various Sectors
Dairy Products under 5% GST Rate
Ultra High Temperature (UHT) milk, Cream, Whey (irrespective of concentrated or containing added sugar or other sweetening matter, Milk and cream (concentrated or containing added sugar or other sweetening matter including skimmed milk powder, milk food for babies, excluding condensed milk) Products consisting of natural milk constituents), yogurt, kephir and other fermented or acidified milk and cream (concentrated or not or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa or not), Chena or paneer packed in unit container with a registered brand name.
Birds’ eggs (out of shell, egg yolks, fresh, dried, cooked by steaming or by boiling in water, frozen, moulded, or preserved in any way (whether or not containing added sugar or other sweetening matter), Natural honey which is packed in unit containers with a registered brand name, Edible products of animal origin which are not specified or included anywhere else.
12% GST Rate Dairy Products
Butter and other fats like ghee & butter, oils derived from milk, dairy spreads and Cheese
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Dairy Products with 18% GST Rate
Only Condensed milk comes under the category of 18% GST.
28% GST Rate Dairy Products
None. As of now, there are no milk or dairy products, including egg, honey and other edible products of animal origin, that attract 28% GST rate. None.