Chapter 4 - Dairy produce; birds eggs; natural honey; edible products of animal origin, not elsewhere specified or included

Notes

The expression "milk" means full cream milk or partially or completely skimmed milk
For the purposes of heading 0405:
1. the term "butter" means natural butter. whey butter or recombined butter (fresh. salted or rancid, including canned butter) derived exclusively from milk, with a milkfat content of 8008 or more but not more than 95% by weight, a maximum milk solids-not-fat content of 2% by weight and a maximum water content of 16% by weight. Butter does not contain added emulsifiers, but may contain sodium chloride. food colours. neutralising salts and cultures of harmless lacticacid-producing bacteria;
2. the expression "dairy spreads" means a spreadable emulsion of the water-in-oil type. containing milkfat as the only fat in the product, with a milkfat content of 39% or more but less than 80% by weight.
Products obtained by the concentration of whey and with the addition of milk or milkfat are to he classified as cheese in heading 0406 provided that they have the three following characteristics:
1. a milkfat content, by weight of the dry matter. of 5 % or more;
2. a dry matter content, by weight. of at least 70 % but not exceeding 85 %; and
3. they are moulded or capable of being moulded.
This Chapter does not cover:
1. products obtained from whey. containing by weight more than 95% lactose, expressed as anhydrous lactose calculated on the dry matter (heading 1702);
2. products obtained from milk by replacing one or more of its natural constituents (for example. butyric fats) by another substance (for example, oleic fats) (heading 1901 or 2106); or
3. albumins (including concentrates of two or more whey proteins. containing by weight more than 80% whey proteins. calculated on the dry matter) (heading 3502) or globulin (heading 3504).

GST Rates of Goods

Chapter Heading	Description	Rate of GST	Schedule	Sr.No
0401	Ultra High Temperature (UHT) milk	0%	Nil	7
0402	Milk and cream, concentrated or containing added sugar or other sweetening matter, including skimmed milk powder, milk food for babies [other than condensed milk ]	5%	I	8
0403	Cream, yoghurt. kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa	5%	I	9
0404	Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or sweetening matter, not elsewhere specified or included	5%	I	10
0405	Butter and other fats (i.e. ghee, butter oil, etc.) and oils derived from milk; dairy spreads	5%	I	12
0406	Cheese	5%	I	13
0408	Birds eggs, not in shell, and egg yolks, fresh, dried, cooked by 5% steaming or by boiling in water, moulded, frozen or otherwise preserved, whether or not containing added sugar or other sweetening matter	5%	I	12
0409	Natural honey, [put up in unit container and,—(a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or any enforceable right in respect of such brand name has been voluntarily foregone, subject to the conditions as in the ANNEXURE]]1	5%	I	13
0410	Edible products of animal origin, not elsewhere specified or included	5%	I	14
0406	Chena or paneer, [put up in unit container and,-(a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or any enforceable right in respect of such brand name has been voluntarily foregone, subject to the conditions as in the ANNEXURE]]1	0%	I	11
0402 91 10	Condensed milk	5%	I	1
0402 99 20	Condensed milk	5%	I	1
0402 91 10	Condensed milk	12%	II	11
0402 99 20	Condensed milk	12%	II	11
0401	Fresh milk ad pasteurised milk, including separated milk, milk and cream, not concentrated nor 25 containing added sugar or other sweetening matter, excluding Ultra High Temperature (UHT) milk	0%	-	25
0403	Curd; Lassi; Butter milk	0%	-	26
0406	Chena or paneer,; [other than those put up in unit container and,-(a) bearing a registered brand 27 name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily, subject to the conditions as in the ANNEXURE I]]2	0%	-	27
0407	Birds eggs, in shell, fresh,preserved or cooked	0%	-	28
0409	Natural Honey; [other than those put up in unit container and,- (b) hearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect (a) bearing a registered brand name; or AofisissuEohxubrREandunrame has been foregone voluntarily, subject to the conditions as in the ANNEXURE I]]1	0%	-	29

Other Exemptions

Description	Notification
Exemption from Registration - Small Taxpayers having turnover below threshold limit	Notification No. 10/2019-C.T., dated 7-3-2019
Composition Levy Scheme for Small Taxpayers having Turnover Up to Rs. 1.5 Crore — Old Scheme	Notification No. 8/2017-C.T., dated 27-6-2017
Composition Levy Scheme for Small Taxpayers having Turnover up to Rs. 1.5 Crore — New Scheme	Notification No. 14/2019-C.T., dated 7-3-2019
Scheme to Pay GST 0 6% - For Taxpayers having turnover less than Rs. 50 Lakhs and Not Eligible for Composition Scheme.	Notification No. 2/2019-C.T. (Rate), dated 7-3-2019
Exemption to Specified Goods supplied to Specified Recipients for Petroleum Exploration etc.	Notification No. 32017-Central Tax (Rate), dated 28-6-2017]
Exemption to Goods Supplied to CSD by way of Refund	Notification No. 6/2017-Central Tax (Rate), New Delhi, dated 28-6-2017.
Exemption to goods supplied by CSD	Notification No. 7/2017-Central Tax (Rate), New Delhi, dated 28-6-2017
United Nation, International Organisation and Foreign Diplomatic Mission Notified as Entitled for refund of GST Paid on supplies received.	Notification No. 16/2017-Central Tax (Rate), dated 28-6-2017
Reduced GST on Supply of Goods to Exporter	Notification No. 40/2017-CT. (Rate), dated 23-10-2017
Concessional GST on Supply of Scientific and technical equipment to research institutions	Notification No. 45/2017-C.T. (Rate), dated 14-11-2017

Departmental Clarifications / Case Law

Fortified Toned Milk

Fortified Toned Milk - Milk is classified under heading 0401 and as per S.No. 25 of notification No. 2/2017-Central Tax (Rate) dated 28.06.2017, fresh milk and pasteurised milk, including separated milk, milk and cream, not concentrated nor containing added sugar or other sweetening matter, excluding Ultra High Temperature (UHT) milk falling under tariff head 0401 attracts NIL rate of GST. Further, as per HSN Explanatory Notes, milk enriched with vitamins and minerals is classifiable under HSN code 0401. Thus, it is clarified that toned milk fortified (with vitamins A and ID) attracts NIL rate of GST under HSN Code 0401. — CBIC Circular No. 52/26/2018-GST, dated, 9th August, 2018.

Flavours of whey protein concentrate, casein, glutamine powder and `creatine

the principles governing the classification of milk products with addition can be no different when flavourings and sweetenings have been added to whey- Classifiable under Heading 0404 ibid and not under Heading 2006- Newlife Nutrition System v Commissioner 2018 (364) ELT 1115 (Tri.-Mumbai). In this case notice issued by Honble Supreme Court.

Khoya/Mawa

Khoya/mawa being concentrated milk falls under 0402 and attracts 5% GST.- C.B.I. & C. Circular F.No.332/2/2017-TRU,dated 7-12-2017