{"id":12705,"date":"2025-09-25T10:30:12","date_gmt":"2025-09-25T05:00:12","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=12705"},"modified":"2026-01-06T12:18:37","modified_gmt":"2026-01-06T06:48:37","slug":"gst-on-milk-paneer-curd-dairy-products","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/gst-on-milk-paneer-curd-dairy-products\/","title":{"rendered":"GST on Milk, Paneer, Curd, and Other Dairy Products in 2026"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d82d8d5121e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d82d8d5121e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/gst-on-milk-paneer-curd-dairy-products\/#Latest-Updates-on-GST-for-Milk-Products\" >Latest Updates on GST for Milk Products<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/gst-on-milk-paneer-curd-dairy-products\/#GST-on-Milk-Paneer-Curd-and-their-HSN-Codes\" >GST on Milk, Paneer, Curd and their HSN Codes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/gst-on-milk-paneer-curd-dairy-products\/#How-to-Calculate-GST-on-Milk-Paneer-and-Curd\" >How to Calculate GST on Milk, Paneer, and Curd?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/gst-on-milk-paneer-curd-dairy-products\/#Impact-of-GST-on-Dairy-Industry\" >Impact of GST on Dairy Industry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/gst-on-milk-paneer-curd-dairy-products\/#How-to-Claim-GST-Input-Tax-Credit-on-Dairy-Products\" >How to Claim GST Input Tax Credit on Dairy Products?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/gst-on-milk-paneer-curd-dairy-products\/#Process-of-Claiming-ITC-on-Dairy-Products\" >Process of Claiming ITC on Dairy Products<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/gst-on-milk-paneer-curd-dairy-products\/#Example-of-ITC-Claim\" >Example of ITC Claim<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/learn\/gst-on-milk-paneer-curd-dairy-products\/#Evolution-of-GST-Regulations-on-Milk-Products\" >Evolution of GST Regulations on Milk Products<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/learn\/gst-on-milk-paneer-curd-dairy-products\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/learn\/gst-on-milk-paneer-curd-dairy-products\/#Frequently-Asked-Questions-FAQs\" >Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Latest-Updates-on-GST-for-Milk-Products\"><\/span><b>Latest Updates on GST for Milk Products<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/razorpay.com\/learn\/53rd-gst-council-meeting\/\"><span style=\"font-weight: 400;\">53rd GST Council<\/span><\/a><span style=\"font-weight: 400;\"> has recommended a 12% GST on all milk cans, irrespective of material or use.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This decision follows the Council\u2019s earlier move in the <\/span><a href=\"https:\/\/pib.gov.in\/Pressreleaseshare.aspx?PRID=1838020#:~:text=including%20pre%2Dpacked%2C%20pre%2Dlabelled%20curd%2C%20lassi%20and%20butter%20milk\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">47th GST council meeting<\/span><\/a><span style=\"font-weight: 400;\"> to impose GST on pre-packed curd, lassi, and buttermilk to curb tax evasion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, milking machines and dairy machinery were subjected to an 18% GST rate during the same meeting.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These changes, effective from July 18, 2022, aim to rationalize the GST structure and boost revenue from the dairy industry.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"GST-on-Milk-Paneer-Curd-and-their-HSN-Codes\"><\/span><b>GST on Milk, Paneer, Curd and their HSN Codes<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"159\" data-end=\"447\">The GST rate on milk and dairy products now exempts essentials \u2014 fresh milk, pasteurized milk, UHT milk, paneer, and curd all attract 0% GST, while value-added items like skimmed milk powder, ghee, butter, cheese, and other packaged dairy products fall under the 5% slab.<\/p>\n<p data-start=\"449\" data-end=\"574\">Below is a detailed breakdown of GST rates on milk, paneer, curd, and other dairy products, along with their HSN codes:<\/p>\n<h3>1. List of Milk and Dairy Products with a 0% of GST Rate<\/h3>\n<table>\n<tbody>\n<tr>\n<td>\n<h3><b>Milk Products<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>GST Rate<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>HSN Code<\/b><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Fresh milk<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0401<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Ultra High Temperature (UHT) milk<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0401<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Pasteurized milk<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0401<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Unsweetened, Unconcentrated milk and cream<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0401<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Unpacked and Unlabeled Curd<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0403<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Unpacked and Unlabeled Lassi<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0403<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Unpacked and Unlabeled Buttermilk<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0403<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on pre-packed and labelled Chena or paneer<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0406<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><em><strong>Read About: <a href=\"https:\/\/razorpay.com\/learn\/gst-exemption\/\">Find the List of Goods and Services Exempt Under GST<\/a><\/strong><\/em><\/p>\n<h3>2. List of Milk and Dairy Products with a 5% of GST Rate<\/h3>\n<table>\n<tbody>\n<tr>\n<td>\n<h3><b>Milk Products<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>GST Rate<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>HSN Code<\/b><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Condensed Milk<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0402 91 10, 0402 99 20<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Milk and cream containing\u00a0 sugar or other sweetening matter<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0402<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Skimmed milk powder<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0402<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Milk food for babies (other than condensed milk)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0402<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Yogurt<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0403<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Kefir<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0403<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Fermented or acidified milk and cream (whether concentrated or not, and whether sweetened, flavored, or containing added fruits, nuts, or cocoa.)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0403<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Pre-packaged and Labelled <\/span><b>Curd<\/b><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0403<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Pre-packaged and Labelled <\/span><b>Lassi<\/b><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0403<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Pre-packaged and Labelled <\/span><b>Butter milk<\/b><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0403<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Milk-based products consisting of natural milk constituents, sweetened or unsweetened, not elsewhere specified or included<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0404<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Butter<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0405<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Ghee<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0405<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Butter\u00a0 oil<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0405<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Oils derived from milk<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0405<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Cheese<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0406<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Soya milk drinks<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2202 99 10<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Beverages containing milk<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2202 99 30<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><em><strong><br \/>\nRelated Read: <a href=\"https:\/\/razorpay.com\/learn\/gst-on-sugar\/\">GST on Sugar in India: Updated HSN Code &amp; Tax Rates<\/a><\/strong><\/em><\/p>\n<h3><span style=\"font-family: Roboto, Arial, sans-serif; font-size: 1.368em;\">3. List of Milk and Dairy Products with a 18% of GST Rate<\/span><\/h3>\n<table>\n<tbody>\n<tr>\n<td>\n<h3><b>Milking and Dairy Machines<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>GST Rate<\/b><\/h3>\n<\/td>\n<td>\n<h3><b>HSN Code<\/b><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Milking machines<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8434<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">GST on Dairy machinery<\/span><\/td>\n<td><span style=\"font-weight: 400;\">18%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8434<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"How-to-Calculate-GST-on-Milk-Paneer-and-Curd\"><\/span><b>How to Calculate GST on Milk, Paneer, and Curd?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you&#8217;re selling pre-packed and labeled curd or paneer, calculating the GST is straightforward:<\/span><\/p>\n<p><b>Formula<\/b><span style=\"font-weight: 400;\">: GST Amount = Selling Price \u00d7 GST Rate<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if you sell a packet of paneer priced at \u20b9100 with a 5% GST rate, the GST amount would be:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>GST Amount<\/b><span style=\"font-weight: 400;\"> = \u20b9100 \u00d7 5% = \u20b95<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Total Price<\/b><span style=\"font-weight: 400;\"> = Selling Price + GST Amount = \u20b9100 + \u20b95 = \u20b9105<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Thus, the final selling price, including GST, would be \u20b9105.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Impact-of-GST-on-Dairy-Industry\"><\/span><b>Impact of GST on Dairy Industry<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>1. Effect on Dairy Farmers<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Dairy farmers face increased costs due to the taxation on products like UHT milk and paneer, which could lower their profit margins. However, exemptions on raw milk help mitigate some financial pressures.\u00a0<\/span><b><\/b><\/p>\n<h3><b>2. Impact on Consumers<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Consumers experience higher prices for pre-packed and labeled dairy products due to the <a href=\"https:\/\/razorpay.com\/learn\/gst-rates-goods-and-service-tax-rates-slabs\/\">GST rate<\/a> impositions. This price hike affects household budgets, particularly those heavily reliant on dairy products.<\/span><b><\/b><\/p>\n<h3><b>3. Challenges Faced by the Dairy Industry<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The dairy industry grapples with compliance challenges, especially for small-scale producers unfamiliar with the GST framework. Ensuring accurate tax filings and claiming input tax credits are additional administrative burdens.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"How-to-Claim-GST-Input-Tax-Credit-on-Dairy-Products\"><\/span><b>How to Claim GST Input Tax Credit on Dairy Products?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Businesses dealing in dairy products like milk, curd, paneer, etc., can claim Input Tax Credit (ITC) under GST, as per the CGST Act.<\/span><\/p>\n<h3><strong>Eligibility Criteria for Claiming ITC (Section 16(1) of the CGST Act)<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">To claim ITC on dairy products, the following conditions must be met:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Registered Person<\/b><span style=\"font-weight: 400;\">: The person must be registered under GST.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Business Use<\/b><span style=\"font-weight: 400;\">: The dairy products must be used in the course or furtherance of business.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Possession of Tax Invoice<\/b><span style=\"font-weight: 400;\">: A valid <a href=\"https:\/\/razorpay.com\/blog\/tax-invoice\/\">tax invoice<\/a> or <a href=\"https:\/\/razorpay.com\/blog\/what-is-debit-note\/\">debit note<\/a> from the supplier must be available.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Receipt of Goods<\/b><span style=\"font-weight: 400;\">: The dairy products must have been received by the business.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tax Payment<\/b><span style=\"font-weight: 400;\">: The supplier must have paid the GST to the government.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Return Filing<\/b><span style=\"font-weight: 400;\">: The GST return must be filed to claim the ITC.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">These criteria ensure that ITC is only claimed for genuine business purposes.<\/span><\/p>\n<h3><strong>When ITC Cannot Be Claimed (Section 17 of the CGST Act)<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">ITC cannot be claimed on:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Personal Use<\/b><span style=\"font-weight: 400;\">: ITC is not available for dairy products used for personal consumption.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b style=\"font-size: 19px;\">Exempt Supplies<\/b><span style=\"font-weight: 400;\">: ITC is not allowed on exempt or non-taxable supplies like fresh milk.<\/span><\/li>\n<\/ul>\n<p><b>Related Read: <\/b><a href=\"https:\/\/razorpay.com\/learn\/gst-on-food-and-restaurants\/\u201d\"><b>GST on Food Items &amp; Restaurants \u2013 Rules and Rates For 2024<\/b><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Process-of-Claiming-ITC-on-Dairy-Products\"><\/span><b>Process of Claiming ITC on Dairy Products<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Ensure GST Registration: <\/b><span style=\"font-weight: 400;\">Make sure your business is registered under GST to be eligible for claiming Input Tax Credit (ITC).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Maintain Proper Documentation: <\/b><span style=\"font-weight: 400;\">Keep all necessary tax invoices, debit notes, and receipts for the dairy products purchased. Accurate record-keeping is crucial for claiming ITC.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Verify Invoices with GSTR-2A: <\/b><span style=\"font-weight: 400;\">Cross-check your purchase invoices with the supplier\u2019s GSTR-1 to ensure they match the details reflected in your GSTR-2A form.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>File GST Returns: <\/b><span style=\"font-weight: 400;\">File your GST returns (GSTR-3B for summary returns and GSTR-1 for outward supplies) on time and ensure accuracy to avoid any discrepancies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Claim ITC in GST Return: <\/b><span style=\"font-weight: 400;\">Declare the eligible ITC in the appropriate sections of your GSTR-3B return to claim the credit.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b style=\"font-size: 19px;\">Utilize ITC: <\/b><span style=\"font-weight: 400;\">Once ITC is claimed, it can be used to offset your output GST liability, reducing the tax you owe to the government.<\/span><\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Example-of-ITC-Claim\"><\/span><b>Example of ITC Claim<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Suppose you run a dairy business and purchase milk, curd, and paneer for resale. The total GST paid on these purchases is INR 10,000. When you sell these products, the GST collected is INR 15,000. You can claim ITC of INR 10,000, reducing your net GST payable to INR 5,000.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Evolution-of-GST-Regulations-on-Milk-Products\"><\/span><b>Evolution of GST Regulations on Milk Products<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In the dynamic landscape of the dairy industry, maintaining affordable access to essential products like milk, curd, and paneer is crucial for both consumers and businesses. While these dairy staples were previously exempt from GST to keep prices low, the recent amendments reflect the government&#8217;s response to revenue challenges and market dynamics.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The 47th GST Council meeting has seen significant developments aimed at curbing revenue leakages associated with unregistered entities selling dairy products without GST compliance. This has raised concerns about fairness in the marketplace, especially for registered businesses.<\/span><\/p>\n<p><b>Key Changes Include:<\/b><\/p>\n<h3><strong>Fortified Toned Milk<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">According to CBIC Circular No. 52\/26\/2018-GST, issued on August 9, 2018, fortified toned milk remains exempt from GST when fortified with essential vitamins like A and D. This exemption underscores the government&#8217;s commitment to promoting health and nutrition among consumers while ensuring affordability under HSN code 0401.<\/span><\/p>\n<h3><strong>Khoya\/Mawa<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Conversely, khoya (mawa) is classified as a concentrated milk product under HSN code 0402, and now incurs a GST of 5%, as per <a href=\"https:\/\/cbic-gst.gov.in\/pdf\/circular-cgst-109n.pdf\" target=\"_blank\" rel=\"noopener\">F. No. 332\/2\/2017-TRU<\/a>, dated December 7, 2017. This adjustment indicates a shift in policy to strike a balance between necessary revenue generation and keeping essential dairy items accessible to the public.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><b>Conclusion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Understanding the GST implications on milk, paneer, and other dairy products is crucial for both businesses and consumers. The revised GST rates and regulations aim to streamline the tax framework, though they also bring challenges in compliance and cost management. By staying informed and compliant with GST regulations, businesses can efficiently manage their tax obligations, while consumers can better understand the pricing of their dairy products.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions-FAQs\"><\/span><b>Frequently Asked Questions (FAQs)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>1. What is the GST on Milk?<\/b><\/h3>\n<p>Fresh milk remains GST-exempt, while pre-packaged and labeled milk are subject to a 0%\u00a0 of GST Rate.<\/p>\n<h3><b>2. Are all types of milk exempt from GST?<\/b><\/h3>\n<p>Not all types of milk are exempt from GST in India.<\/p>\n<h3><b>3. Can I claim an input tax credit (ITC) on purchases of milk products?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, businesses can claim ITC on GST paid for milk products used for business purposes.<\/span><b><\/b><\/p>\n<h3><b>4. Is there GST on flavored milk?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, flavored milk attracts a 5% GST rate.<\/span><b><\/b><\/p>\n<h3><b>5. Is there GST on Lassi or Yoghurt?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Lassi is exempt from GST, while yogurt attracts a 5% GST rate.<\/span><b><\/b><\/p>\n<h3><b>6. What is the GST rate on curd and buttermilk?<\/b><\/h3>\n<p>Unpacked and unlabeled curd and buttermilk are exempt from GST. However, pre-packed and labeled curd and buttermilk attract a GST rate of 5%.<\/p>\n<h3><b>7. Is there GST on ghee and butter?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, both ghee and butter attract a 5% of GST rate.<\/span><b><\/b><\/p>\n<h3><b>8. Is there GST on milk powder?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, milk powder attracts a 5% of GST rate.<\/span><\/p>\n<h3>9. What is the GST Rate on Milk Cans?<\/h3>\n<p>Uniform GST rate of 12% is applicable to all types of milk cans, regardless of the material used (steel, iron, aluminum, etc.)<\/p>\n<h3>10. How much GST is on a milking machine?<\/h3>\n<p><a href=\"https:\/\/cbic-gst.gov.in\/gst-goods-services-rates.html#:~:text=Milking%20machines%20and%20dairy%20machinery%E2%80%9D%3B\" target=\"_blank\" rel=\"noopener\">As per GST Guidelines<\/a>, The GST rate on milking machines is 18%.<\/p>\n<h3>11. Is GST applicable on transportation of milk?<\/h3>\n<p>No, GST is not applicable on the transportation of milk.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Latest Updates on GST for Milk Products The 53rd GST Council has recommended a 12% GST on all milk cans, irrespective of material or use. This decision follows the Council\u2019s earlier move in the 47th GST council meeting to impose GST on pre-packed curd, lassi, and buttermilk to curb tax evasion. Additionally, milking machines and<\/p>\n","protected":false},"author":151156615,"featured_media":13710,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3913],"tags":[3953,3955,3948,3954],"class_list":{"0":"post-12705","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gst-rates-goods-and-service-tax-rates-slabs","8":"tag-gst-on-curd","9":"tag-gst-on-dairy-products","10":"tag-gst-on-milk","11":"tag-gst-on-paneer"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12705","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156615"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=12705"}],"version-history":[{"count":24,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12705\/revisions"}],"predecessor-version":[{"id":18650,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/12705\/revisions\/18650"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/13710"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=12705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=12705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=12705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}