Desi ghee HSN Code

Understand the Desi Ghee’s HSN Code

Desi Ghee, a staple in Indian kitchens and a revered ingredient in traditional practices, holds a unique place in culinary and cultural heritage. For businesses involved in the production, distribution, or sale of this golden elixir, understanding its correct HSN (Harmonized System of Nomenclature) code is essential for seamless GST (Goods and Services Tax) compliance. The HSN system, a globally recognized method of classifying products, ensures uniformity in taxation and trade across borders.

Finding Desi Ghee in the HSN System

Desi Ghee is a dairy product, specifically a type of fat derived from milk. Therefore, its HSN classification falls under Chapter 04, which covers “Dairy produce; birds eggs; natural honey; edible product of animal origin, not elsewhere specified or included.” This chapter is the appropriate home for various milk-based products.

The specific HSN code for Desi Ghee is:

• 04059020 (12% GST): This code specifically designates “Other Ghee” under the broader heading of “Butter And Other Fats And Oils Derived From Milk; Dairy Spreads.” This indicates that regardless of whether it’s cow ghee, buffalo ghee, or any other form of traditional ghee, it will be classified under this code.

It is important to note that the provided data also mentions “Bengal Gram (Desi Channa)” with HSN code 07132020 and a 5% GST rate. This is a completely unrelated product (a type of legume) and should not be confused with Desi Ghee.

Therefore, for any business dealing with Desi Ghee in India, HSN code 04059020 is the correct classification, and it attracts a GST rate of 12%. This rate became effective on July 1, 2017.