GST invoice format for a dairy (milk and milk products)
A dairy sells a mix of exempt and taxable goods, so its invoice must handle both. Fresh milk and UHT milk under 0401 and pre-packaged paneer are nil-rated, while ghee and butter under 0405 and cheese under 0406 attract 5%. A combined invoice-cum-bill of supply is allowed for such mixed sales. The format should show fat or SNF where relevant, litre-wise quantities, monthly delivery periods for home customers, and the FSSAI number.
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Sample prices are illustrative. Check the GST rate for your exact item or service before billing.
Extra fields a dairy invoice needs
Fat and SNF percentage
Milk is priced by fat and solids-not-fat content, especially for bulk buyers. Printing the readings explains the rate per litre and is often required by institutional customers such as hotels.
Billing period for subscriptions
Doorstep milk customers are billed monthly. A from-to period with daily quantities lets households check deliveries and avoids disputes about missed days.
Exempt and taxable subtotals
Milk and paneer are nil-rated while ghee, butter and cheese are taxable at 5%. Separate subtotals make the invoice-cum-bill of supply easy to read and simplify reporting in the return.
Batch and use-by date
Packaged dairy products are perishable. Recording batch and use-by dates on the invoice helps trace a complaint to a production lot and supports recalls.
Crate or can deposit
Bulk buyers receive milk in cans or crates. A refundable deposit is not consideration for a supply until it is adjusted; show deposits separately from the product value.
FSSAI licence number
Dairies are licensed food businesses, and the licence number on invoices is checked by institutional buyers and food safety officers alike.
Standard GST invoice fields
Rule 46 of the CGST Rules applies to every tax invoice, including this one:
✓Supplier name, address and GSTIN
✓Consecutive invoice number (max 16 characters, unique for the year)
The 56th GST Council exempted UHT milk and pre-packaged and labelled chena or paneer from 22 September 2025. The Council's FAQs explain that all dairy milk other than UHT milk was already exempt, so the change mainly brought long-life milk and branded paneer to nil. Ghee, butter and dairy spreads under 0405 and cheese other than chena or paneer under 0406 stay in the 5% schedule. Update your item master so that UHT milk and packaged paneer carry a nil rate and appear in the exempt section of the bill.
Invoice-cum-bill of supply
A registered dairy that sells both taxable and exempt goods to an unregistered customer can issue a single invoice-cum-bill of supply under rule 46A, instead of a separate tax invoice and bill of supply. The document must still show the tax rate and amount for the taxable lines and indicate that the remaining lines are exempt. For registered buyers, the taxable lines must meet all tax invoice requirements so that the buyer can claim credit on ghee or cheese.
Input tax credit reversal for exempt sales
Because milk and paneer are exempt, credit on common inputs such as packaging film, chilling plant power and transport must be reversed in proportion to exempt turnover under rule 42 and 43. Credit attributable entirely to ghee or cheese can be claimed, and credit attributable entirely to milk cannot. Keep the monthly working, because dairies with high milk volumes often end up reversing most of their common credit.
Flavoured milk and dairy beverages
Flavoured milk drinks are not 'milk' for exemption purposes. Beverages containing milk fall under 2202 99 30 in the 5% schedule of Notification 9/2025-Integrated Tax (Rate). Do not bill a bottle of flavoured milk under 0401 at nil just because it comes from the same dairy. Likewise, sweetened or flavoured aerated drinks sold alongside are in the 40% schedule and should be kept off the dairy line entirely.
Common billing mistakes
✕Charging 5% on UHT milk or packaged paneer after both became nil-rated on 22 September 2025.
✕Billing flavoured milk under 0401 as exempt instead of as a milk beverage at 5%.
✕Claiming full input tax credit on packaging and chilling costs without reversing the share used for exempt milk.
✕Treating can or crate deposits as sales and paying GST on them before any adjustment is made.
✕Issuing a bill of supply for the whole monthly delivery to a hotel, leaving the hotel unable to claim credit on the taxable ghee and cheese lines.
✕Using the same HSN 0406 entry and rate for packaged paneer and processed cheese, when paneer is nil-rated and other cheese carries 5%.
Dairy GST invoice: FAQ
Is GST charged on milk?
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Fresh milk and UHT milk under heading 0401 are exempt, so no GST is charged. Milk beverages, flavoured milk and milk products such as ghee and cheese are taxable at 5%.
Is paneer taxable?
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Loose paneer was already exempt, and pre-packaged and labelled paneer became exempt from 22 September 2025. Cheese other than paneer and chena remains at 5%.
Can a dairy give one bill for milk and ghee?
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Yes. A registered dairy may issue an invoice-cum-bill of supply covering both exempt milk and taxable ghee, showing tax only on the taxable lines.
Does a dairy that sells only milk need GST registration?
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A person supplying only exempt goods is not required to register. Once the dairy sells taxable products such as ghee or butter and crosses the threshold, registration becomes necessary.
How should a dairy bill a hotel that buys milk and cheese every day?
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Raise one invoice per delivery or a consolidated monthly tax invoice backed by daily delivery challans. Show milk in the exempt section and cheese in the taxable section with the hotel's GSTIN, so the hotel can claim credit on the cheese where its own output allows it.