GST Rate on Ghee & Butter: 12%

HSN 0405 · 6% CGST + 6% SGST intra-state, or 12% IGST interstate.

Ghee, butter, and dairy spreads attract 12% GST under heading 0405 — higher than milk (exempt) and curd (5% when packaged), reflecting their value-added status in the dairy chain.

Worked example at 12%

Taxable value: ₹10,000
CGST (6%): ₹600.00
SGST (6%): ₹600.00
Invoice total: ₹11,200.00

Interstate, the same sale shows a single IGST line of ₹1,200.00. Try your own numbers in the GST calculator.

Classification

Ghee & Butter is classified under HSN 0405 — see the full classification page for the official description, parent and related codes, and digit-length rules. Rates follow GST Council notifications and can change; the rate shown here is the one typically associated with this classification.

Also at 12% GST

Bicycles HSN 8712 Carpets HSN 5703 Hotel Rooms SAC 996311 LED Bulbs HSN 853950 Medicines HSN 300490 Pasta & Noodles HSN 1902 Sports Goods HSN 9506 Toys HSN 9503

Frequently asked questions

GST grades the dairy chain by processing: fresh milk is exempt, packaged curd/lassi/paneer 5%, and value-added fats like ghee and butter 12%.

For a sale within one state, the 12% splits equally into 6% CGST and 6% SGST. For an interstate sale it is charged as a single 12% IGST — the total tax is the same either way.

HSN code 0405. The code appears on every invoice line and flows into the GSTR-1 summary and e-way bills.

Related tools & guides

Never look this rate up again

Save Ghee & Butter as a product in Invodo with its HSN code and rate — every invoice applies it automatically. Start free.

Start Free Trial Explore Features