HSN code for Butter — 0405 · GST 5%
Butter is billed under HSN 0405, which covers butter and other fats and oils derived from milk; dairy spreads. Under GST 2.0 the rate is 5%.
Also called: makkhan, white butter, table butter
GST on butter
- GST rate
- 5%
- Within your state
- CGST 2.5% + SGST/UTGST 2.5%
- To another state
- IGST 5%
Example invoice line
Selling to another state: IGST 5% (₹6.00) replaces CGST and SGST.
What HSN 0405 covers
Butter and other fats and oils derived from milk; dairy spreads
Table butter, white butter and desi ghee (butter oil). Margarine and vanaspati are not milk fats and sit in chapter 15.
Butter moved from 12% to 5% under GST 2.0.
Also under 0405: Ghee
Questions about butter
What is the HSN code for butter?
Butter is classified under HSN 0405: Butter and other fats and oils derived from milk; dairy spreads.
What is the GST rate on butter?
5% under GST 2.0, in force since 22 September 2025. Within your state that is 2.5% CGST plus 2.5% SGST (or UTGST); to a buyer in another state it is 5% IGST.
Is butter ever taxed differently?
Butter moved from 12% to 5% under GST 2.0.
How many digits of the HSN code go on the invoice?
If your aggregate turnover in the previous financial year was up to ₹5 crore, print at least 4 digits (0405) on B2B tax invoices; on B2C invoices it is optional. Above ₹5 crore, print 6 digits (the 6-digit code for your exact product) on every invoice.
Related HSN codes
Bill with the right HSN automatically — start free
Save butter once with HSN 0405 and its rate, and InDhanPay Books puts the right code and the CGST/SGST or IGST split on every bill after that.