GST Rate on Butter
The GST rate on butter is 5%, under HSN code 0405 (butter and other fats derived from milk). Here is the full breakdown, a worked example, and related rates in Food & Beverages.
GST rate breakdown for butter
- GST rate: 5%
- Intra-state: 2.5% CGST + 2.5% SGST
- Inter-state: 5% IGST
- HSN code on the invoice: 0405
- Also covers: ghee, makhan
Rates reflect the GST 2.0 structure effective 22 September 2025 (slabs 0%, 5%, 18%, 40%). Confirm the current rate on the official GST portal before invoicing.
Worked example: GST on butter
- Taxable value: ₹10,000
- GST (5%): ₹500
- Within state: ₹250 CGST + ₹250 SGST
- To another state: ₹500 IGST
- Invoice total: ₹10,500
FAQs about GST on butter
What is the GST rate on butter?
The GST rate on butter is 5%. Intra-state it is 2.5% CGST + 2.5% SGST; inter-state it is 5% IGST. Butter falls under HSN code 0405.
What is the HSN code for butter?
Butter falls under HSN code 0405, which covers butter and other fats derived from milk. Show this code on every GST tax invoice line for butter.