Milk is an integral part of our daily lives in India. However, different types of milk and milk products have different HSN codes and GST rates. After the new tax policy of September 22, 2025, it is essential for traders, farm owners, and consumers to know these codes. Here are the HSN codes of milk and milk products and the corresponding GST rates.
Beverages
| Chapter | Description | HSN Code | Rate (%) | CESS (%) | Effective Date | Rate Revision In 2025 |
| Dairy produce; birds eggs; natural honey; edible product of animal origin, not elsewhere specified or included | Butter and Other Fats and Oils Derived from Milk; Dairy Spreads | 4059090 | 12% | – | 01/07/2017 | 5% |
| Milk and cream, concentrated or containing added sugar or other sweetening matter – Other | 4022990 | 5% | – | 01/07/2017 | – | |
| Milk and cream – Fat content, by weight ≤ 1% | 4011000 | 5% | – | 01/07/2017 | – | |
| Fresh milk and pasteurised milk, including separated milk, not concentrated or containing sugar, excluding UHT milk | 0401 | 0% | – | 01/07/2017 | – | |
| Whey, whether concentrated or containing sugar or not; products of natural milk constituents Whether or Not Containing Added Sugar or Other Sweetening Matter, Not Elsewhere Specified | 4049000 | 5% | – | 01/07/2017 | – | |
| Milk and cream, concentrated or containing added sugar – Whole milk | 4022910 | 5% | – | 01/07/2017 | – | |
| Butter and other fats and oils derived from milk; dairy spreads | 0405 | 12% | – | 01/07/2017 | -5% | |
| Milk And Cream, Not Concentrated nor Containing Added Sugar or Other Sweetening Matter – Of A Fat Content, By Weight, Exceeding 10% | 4015000 | 5% | – | 01/07/2017 | – | |
| Milk And Cream, Concentrated or Containing Added Sugar or Other Sweetening Matter Skimmed in Powder, Granules or Other Solid Forms, of a Fat Content, By Weight Not Exceeding 1.5% : Skimmed Milk | 4021010 | 5% | – | 01/07/2017 | – | |
| Butter And Other Fats and Oils Derived from Milk; Dairy Spreads Butter | 4051000 | 12% | – | 01/07/2017 | -5% | |
| Butter Milk, Curdled Milk and Cream, Yogurt, Kephir and Other Fermented or Acidified Milk and Cream, Whether or Not Concentrated or Containing Added Sugar or Other Sweetening Matter Or flavoured Or Containing Added Fruit, Nuts or Cocoa | 0403 | 0% | – | 01/07/2017 | – | |
| Buttermilk, Curdled Milk and Cream, Yogurt, Kephir and Other Fermented or Acidified Milk and Cream, Whether or Not Concentrated or Containing Added Sugar or Other Sweetening Matter Or flavoured Or Containing Added Fruit, Nuts Or Cocoa Other Butter Milk | 4039010 | 5% | – | 01/07/2017 | – | |
| Milk and cream – Fat content > 1% and ≤ 6% | 4012000 | 5% | – | 01/07/2017 | – | |
| Butter And Other Fats and Oils Derived from Milk; Dairy Spreads Other Ghee | 04059020 | 12% | – | 01/07/2017 | -5% | |
| Beverages, spirits and vinegar | Waters, Including Mineral Waters and aerated Waters, Containing Added Sugar or Other Sweetening Matter Or Flavoured, and Other Non – Alcoholic Beverages, Not including Fruit Or Vegetable Juices Of heading 2009 – Other : Beverages Containing Milk | 22029030 | 28% | – | 01/07/2017 | -18% |
| Soya milk drinks | 22029910 | 12% | – | 01/07/2017 | – | |
| Albuminoidal substances; modified starches; glues; enzymes | Albumins (Including Concentrates of Two Or More Whey Proteins, Containing by Weight More Than 80% Whey Proteins, Calculated On The Dry Matter), Albuminates and Other Albumin Derivatives Milk Albumin, Including Concentrates of Two Or More Whey Proteins | 35022000 | 18% | – | 01/07/2017 | – |
| Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof | Milking Machines and Dairy Machinery Milking Machines | 84341000 | 18% | – | 01/07/2017 | -5% |
| Milking Machines and Dairy Machinery – Parts of Dairy Machinery | 84349020 | 18% | – | 01/07/2017 | -5% | |
| Milking Machines and Dairy Machinery Dairy Machinery | 84342000 | 18% | – | 01/07/2017 | -5% | |
Read more – GST Rate & HSN Code for Pharma Products
The Final Words
If traders know the correct HSN codes and GST rates of milk and milk products, they can easily file tax returns, and consumers can buy products at the right price. According to the new rules of 2025, although milk is mostly tax-free, tax is being imposed on processed products such as ghee, butter, and milk-based beverages. Therefore, it is important for businesses to know the updated information.
To get expert assistance in GST registration and GST return filing, visit https://corpbiz.io/.
Frequently Asked Questions
What is the HSN code of fresh milk or raw milk?
The HSN code of fresh milk or raw milk is 0401. This milk does not contain any added sugar or processing and is completely exempt from GST. So, common consumers can buy milk without tax. This is part of the government's policy to keep milk prices affordable for the common man.
Is GST applicable to pasteurized milk?
Pasteurized milk also falls under HSN code 0401, and 0% GST applies to it. No tax is payable on the purchase and sale of pasteurized milk. However, if milk is further processed to make other products, such as ghee or butter, then a tax is levied on that product.
What percentage of GST is levied on skimmed milk powder?
Skimmed milk powder falls under HSN code 04021010, and 5% GST applies to it. This category includes milk with a maximum fat content of 1.5%. Its rate remains unchanged even after the tax revision of 2025.
Which milk products are completely tax-free?
Raw milk, pasteurized milk, curd, lassi, and other traditional fermented milk products are completely exempt from GST. They fall under HSN code 0403. This facility has been provided to meet the daily needs of the common man.
What is the percentage of GST to be paid on ghee and butter?
Ghee (HSN code 04059020) and butter (HSN code 04051000)—These two products attract 5% GST. Since they are processed and high-value products, the government has brought them under the tax.
What is the HSN code of whey?
The HSN code of whey is 04049000. It falls under 5% GST. Whey is an important by-product of milk processing, which is used to make various healthy foods and nutritional powders.
Is flavored milk taxed?
Yes, flavored milk falls under HSN code 22029030 and attracts 18% GST. Unlike regular milk, it is not considered a staple food but a beverage.
How much GST is on Protein Powder or Whey Protein?
18% GST is applicable on whey protein (HSN code 35022000). It contains 80% or more protein, which is popular with athletes and health-conscious people.
How much GST is on Soya Milk Drinks?
Soya milk drinks fall under HSN code 22029910 and attract 5% GST. It is used as a substitute for regular milk, but not as a staple food, hence taxed.
How much GST is on a dairy machine or milking machine?
Milking machines (HSN code 84341000) and other dairy machines (HSN code 84342000) used in the dairy industry attract 18% GST. Similarly, the same rate of tax is applicable to the spare parts.
Is UHT milk tax-free?
No, UHT (Ultra High Temperature) milk is not tax-free. While fresh and pasteurized milk are tax-free, UHT milk is considered a processed product; hence, GST applies to it.
How much GST is payable on milk cream?
Milk and cream are classified under HSN codes 04011000, 04012000, and 04015000, and 5% GST is applicable on them. This classification is done based on the fat content.
Is it mandatory for milk sellers to mention the HSN code?
Yes, even though it is tax-free, the HSN code has to be mentioned on every invoice. This is mandatory as per the GST rules and helps in maintaining proper accounting.
How much GST is levied on condensed milk?
Condensed milk with sugar or sweeteners falls under HSN code 04022990 and attracts 5% GST. It is classified differently from regular milk.
How much GST is levied on sweets made from milk?
Milk-based sweets like sandesh, rasgulla, peda, or barfi are not classified under the milk section of the HSN code but under the confectionery section. Generally, 5% to 18% GST is levied on them.
Why is fresh milk tax-free, but butter is taxed?
Fresh milk is exempt from tax, as it is a basic food. However, butter and ghee are considered processed and luxury goods; hence, 5% GST is levied on them.
What is the impact of GST on milk farmers?
There is no direct GST burden on milk farmers, as raw milk is exempt from tax. However, those who process milk to make ghee, butter, or powder have to comply with GST at the business level.
How much GST applies to lactose products?
Lactose-based products generally fall under HSN code 04049000 and attract 5% GST. However, if the product is specially processed, a different classification may apply.
Is the same GST rate applicable to imported dairy products?
Yes, the same GST rate applies to imported dairy products. However, customs duty and import duty are also added to it.
Is GST levied on exported dairy products?
No, exports of milk and dairy products are treated as zero-rated supplies. Exporters can claim input tax credit.
How much GST is levied on milk chocolate?
Milk chocolate is not a dairy product but a part of confectionery.
Read more – Key Differences Between HSN Code and SAC Code
