Official Classification

Under the Harmonized System of Nomenclature (HSN), the code 0405 specifically identifies butter, ghee, dairy spreads for the purpose of taxation and trade in Bharat. This ensures uniform classification across all Indian states and Union Territories.

Intra-State Split

CGST 6% + SGST 6%

Inter-State Split

IGST 12%

Compliance Check-list

✓Mention HSN 0405 on all Tax Invoices for butter, ghee, dairy spreads
✓Include in HSN-wise summary of GSTR-1 filings
✓Mandatory for E-way bill generation for goods above threshold
✓Ensure Input Tax Credit (ITC) matches this classification

✨ AI Compliance Insight

Expert Advice for 0405

"Classifying butter, ghee, dairy spreads correctly is critical to avoid litigation. While the base rate is 12%, always check for anti-dumping duties if importing, especially under the Dairy category. AasanKhata automatically monitors these shifts for you."