Please refer NOTIFICATION No. 10/2025-Central Tax (Rate). See Sr. No. 15. The correct code is 0401.

The correct HSN code for milk and cream, not concentrated nor containing added sugar or other sweetening matter, is 0401. The HSN code stated by you incorrect. 0401 has always been exempted from GST.

- Since, your vendor is unable to find a match under 4015, they he can use HSN 0401 for cream, which still qualifies for 0% GST.

- Paneer and raw milk fall under HSN Code 0401, and no GST applies to them.

Unable to find the HSN code for cream .wait for clarification 

Cream that is under the description made by you  (i.e. not concentrated, not sweet, non-branded, etc.) should theoretically fall under HSN 0401 sub-heading corresponding to its fat content, and, based on past/known GST rates, attract 0% GST.
With GST-2.0, the government issued updated schedules and lists, which may have changed rates or classification. For example:

Fresh and pasteurised milk including cream, not concentrated, not sweetened, excluding UHT milk – this has been shown as exempt / 0% in recent rate tables.
The vendor’s not seeing an entry may be because the cream no longer is categorised in the older “5% under 0401” slab in the new schedule but under 0% of meeting conditions.

It’s 0401 now

1. On invoice put:
   HSN: 0401
   Description: “Milk and cream, not concentrated, not containing added sugar”
   GST: NIL (IGST 0% / CGST 0% + SGST 0%)

2. If your product changes form:

   • If you thicken/concentrate or sweeten it → move to 0402 at 5%.

   • If you ferment/acidify it (e.g., sour cream) → 0403 at 5%.

Source: Government rate reckoner (CGST as on [deleted]). It lists 0401 (milk & cream, not concentrated/unsweetened) as NIL, 0402 (concentrated/with sugar) at 2.5% CGST, 0403 (fermented/acidified milk & cream) at 2.5% CGST, and 0406 chhena/paneer as NIL.

Fresh cream (non-sweetened, non-concentrated, non-branded and unpackaged) is still exempt from GST after the recent reforms. It should be billed under HSN 0401 (Milk and cream, not concentrated nor containing added sugar or other sweetening matter). The exemption continues at 0% GST, just like raw milk and paneer when sold in non-branded/unpackaged form.

Dear Client,

Fresh, unsweetened, non-concentrated cream still comes under HSN 0401 along with milk, and provided it is plain cream without processing or added sugar, it still remains out of GST (0%), while if the item is concentrated, sweetened, or value-added, it shifts to HSN 0402/0403 and is subject to 5%; thus, you need to invoice your cream under HSN 0401 at 0% GST, making sure you have supporting documentation (such as product specs and invoices) proving it is fresh cream, and in case of doubt on classification due to processing or branding, it is better to ask for a written clarification from your GST consultant or seek an advance ruling so you avoid future litigation.

I hope this answer helps. For any further queries, please do not hesitate to contact us, Thank you.

Under the revised GST framework effective from 22nd September 2025, fresh cream (non-sweetened, non-concentrated, non-branded) is classified under HSN Code 0401 and is exempt from GST.

HSN Code 0401 encompasses:

• Fresh milk and pasteurized milk

• Milk and cream, not concentrated nor containing added sugar or other sweetening matter

• Including separated milk

• Excluding Ultra High Temperature (UHT) milk

Therefore, for billing purposes, you should use HSN Code 0401 for your fresh cream products.

Billing Recommendations:

• HSN Code: 0401

• GST Rate: 0% (Exempt)

• Description: Fresh Cream (Non-Sweetened, Non-Concentrated, Non-Branded)

Note: Ensure that your product description accurately reflects the nature of the cream to avoid any compliance issues.

If you require further assistance or clarification, feel free to ask