GST rate and HSN code for paneer
GST on paneer and chena is nil (HSN 0406) from 22 September 2025, whether loose or pre-packaged and labelled. Before that, packed paneer was 5%. Cheese, which is also heading 0406, is not exempt: cheese slices, cubes and mozzarella are 5%. A dairy needs separate item codes for paneer and cheese.
HSN code and GST rate for paneer
| Condition | HSN | GST | CGST + SGST | IGST | Schedule entry |
|---|---|---|---|---|---|
| Paneer and chena, loose or packed | 0406 | Nil | Nil | Nil | Notification 10/2025-CT(Rate), S. No. 17 |
In force from 22 September 2025. Inside your State, half the rate is CGST and half SGST; for a buyer in another State the full rate is IGST (same entries in Notification 9/2025-IT(Rate)). Entry wording (shortened): “Chena or paneer, whether or not pre-packaged and labelled”.
What changed in September 2025
| Condition | Before 22 Sep 2025 | From 22 Sep 2025 |
|---|---|---|
| Paneer and chena, loose or packed | 5% (packed) | Nil |
Old rate as listed in Annexure I of the PIB release on the 56th GST Council meeting (3 September 2025).
What to print on the bill
- Print HSN 0406 at 0% for paneer and chena.
- Cheese is 0406 at 5%; keep it as a separate item.
- Malai paneer, tofu and paneer tikka are different products; check their HSN.
- HSN digits: 4 if your turnover last year was up to ₹5 crore, 6 above that; up to ₹5 crore you may leave HSN off bills to unregistered buyers (Notification 78/2020-CT). More in B2C bill rules.
Common mistakes
- Still charging 5% on branded paneer packs.
- Billing cheese at 0% because it shares HSN 0406 with paneer.
- Billing tofu (soya paneer) as paneer; tofu is not milk chena.
Put the right HSN and GST on every bill
RichPOS saves the HSN and GST rate on each item and applies them on every bill automatically, with the HSN printed on A4 GST invoices and GST reports by HSN for your CA. Free 30-day trial, ₹99/month for 3 months (then ₹199/month).
Questions about GST on paneer
Is packed paneer taxable now?
No. Chena or paneer, whether or not pre-packaged and labelled, is nil (Notification 10/2025, S. No. 17). It was 5% when packed (PIB, Annexure I).
Is cheese exempt like paneer?
No. Cheese other than chena or paneer is 5% (Schedule I, S. No. 8).
Is frozen paneer still nil?
Frozen paneer is still chena or paneer under 0406, so it is nil.
More items in HSN chapter 04 and milk and dairy
Look up another item in the HSN and GST rate finder, or see all GST rates by category.
General information, not tax advice. Rates are taken from Notification No. 10/2025-Central Tax (Rate), dated 17 September 2025 (exempt goods), as amended, and were last checked on 16 October 2026. The rate depends on the exact description and classification of your product: check it with your CA.