Introduction to HSN Codes Chapter 4
GST Rate & HSN Code for Dairy produce birds eggs natural honey edible products of animal origin – Chapter 4: The Goods and Services Tax (GST) is a comprehensive indirect tax imposed on the supply of goods and services in India. It is a destination-based tax levied on every stage of value addition, with the ultimate burden falling on the end consumer. Under the GST regime, all goods and services are classified into different chapters and taxed at different rates. In this article, we will discuss the GST rate and HSN code for dairy produce, birds’ eggs, natural honey, and edible products of animal origin under Chapter 4.
This chapter covers a wide range of products such as milk, cheese, eggs, honey, and other animal products. These items are considered essential commodities and are consumed by a large section of the Indian population. Therefore, it is crucial to understand the GST rates and compliance requirements for these goods.
GST Rates for Dairy Produce, Birds’ Eggs, Natural Honey, and Edible Products of Animal Origin
The GST rates for goods falling under Chapter 4 are as follows:
| HSN Code | Description | GST Rate |
|---|---|---|
| 0401 | Milk and cream, not concentrated nor containing added sugar or other sweetening matter | 5% |
| 0402 | Milk and cream, concentrated or containing added sugar or other sweetening matter | 12% |
| 0403 | Buttermilk, curd, yoghurt, and other fermented or acidified milk and cream | 5% |
| 0404 | Whey, whether or not concentrated or containing added sugar or other sweetening matter | 5% |
| 0405 | Butter and other fats and oils derived from milk | 12% |
| 0406 | Cheese and curd | 12% |
| 0407 | Birds’ eggs, in shell, fresh, preserved or cooked | Nil |
| 0408 | Egg yolks, fresh, dried, cooked by steaming or by boiling in water, moulded, frozen or otherwise preserved | Nil |
| 0409 | Natural honey | Nil |
| 0410 | Edible products of animal origin, not elsewhere specified or included | 12% |
GST Compliance and Invoicing
Under the GST regime, businesses dealing with dairy produce, birds’ eggs, natural honey, and edible products of animal origin must comply with certain rules and regulations. Here are the key points to keep in mind:
– All businesses with an annual turnover of more than Rs. 40 lakhs (Rs. 10 lakhs for North-Eastern and hill states) are required to register under GST.
– They must issue tax invoices for all taxable supplies, using a GST-compliant accounting or billing software.
– The tax invoice must include the HSN code, description, quantity, value, and GST rate of the goods supplied.
– In case of multiple products, the HSN codes and GST rates can be mentioned in the invoice summary.
– Taxpayers must file monthly, quarterly, or annual GST returns, depending on their turnover.
– In case of export of goods, businesses must follow the rules for zero-rated supplies and claim a refund of the GST paid on inputs.
Example scenario: A dairy farmer sells 100 liters of milk (HSN code: 0401) to a milk processing company for Rs. 50 per liter. The GST rate for milk is 5%. Here’s how the invoice should look like:
| Description | HSN Code | Quantity | Price per unit | Subtotal | GST Rate | GST Amount | Total |
|---|---|---|---|---|---|---|---|
| Milk and cream, not concentrated nor containing added sugar or other sweetening matter | 0401 | 100 liters | Rs. 50 | Rs. 5,000 | 5% | Rs. 250 | Rs. 5,250 |
- Key notes for compliance:
– Register under GST if your annual turnover exceeds Rs. 40 lakhs (Rs. 10 lakhs for North-Eastern and hill states).
– Issue tax invoices with correct HSN codes and GST rates.
– File GST returns within the due dates.
– Claim input tax credit on purchases made for business purposes.
– Follow the rules for export of goods to claim a refund of the GST paid.
Conclusion
Understanding the GST rate and HSN code for dairy produce, birds’ eggs, natural honey, and edible products of animal origin is crucial for businesses operating in this sector. It not only helps in complying with the GST laws but also ensures that the correct amount of tax is paid on the supplies made. Businesses must also keep track of any changes in the GST rates and comply with the latest rules and regulations to avoid penalties and interest charges.
FAQs for Dairy produce birds eggs natural honey edible products of animal origin – Chapter 4
What is the GST rate for milk and cream?
The GST rate for milk and cream, not concentrated nor containing added sugar or other sweetening matter, is 5%.
Do I need to register under GST if I sell birds’ eggs?
Yes, if your annual turnover exceeds Rs. 40 lakhs (Rs. 10 lakhs for North-Eastern and hill states), you must register under GST.
What is the HSN code for eggs?
The HSN code for eggs is 0407.
Can I claim input tax credit on the purchase of milk processing equipment?
