Amul confirms no price cut for pouch milk under GST 2.0

INDIA – Amul, one of the country’s most popular dairy brands, has clarified that there will be no reduction in pouch milk prices from September 22, 2025, as it already attracts zero percent GST.

Jayen Mehta, Managing Director of Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul products, said, “There is no change proposed in prices of fresh pouch milk as there is no reduction in GST. It has always been zero percent GST on pouch milk.”

Earlier, some media reports suggested that pouch milk prices could be reduced by Rs 3 to Rs 4 under the GST 2.0 framework.

However, Mehta clarified that such reports are inaccurate as pouch milk has always been exempt from GST. The relief under the new tax structure will only apply to UHT milk, which will now become cheaper with the GST rate cut from 5 per cent to nil.

“Only long-life UHT milk prices will be reduced with effect from September 22 due to reduction in GST from 5 per cent to Nil.” said Mehta

On September 3, Finance Minister Nirmala Sitharaman announced new GST measures, describing them as a historic reform aimed at easing the cost of living and boosting economic activity.

Termed the “Next-Gen GST Reform,” the sweeping rate cuts are expected to benefit households, farmers, businesses, and the healthcare sector.

The 56th GST Council meeting decided to rationalise GST rates into two slabs, 5 per cent and 18 per cent by merging the existing 12 per cent and 28 per cent rates.

Under the newly approved two-rate GST structure—comprising a 5% merit rate and an 18% standard rate—the Council has significantly reduced the tax burden on essential dairy products.

Ultra-High Temperature (UHT) milk, along with pre-packaged and labelled paneer (chena), has been exempted from GST entirely, down from the previous 5% rate.

Other dairy-related items such as condensed milk, butter, cheese, and milk-based beverages have seen their GST rates slashed from 12% to 5%, aligning with the Council’s broader goal of correcting inverted duty structures and promoting equitable taxation.

This significant rationalization is expected to benefit over 8 crore rural farmer families, particularly small, marginal, and landless labourers dependent on dairy farming, while also extending advantages to millions of consumers.

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