GST reforms: Mother Dairy cuts prices of packaged milk, dairy products
The Statesman | 17 September 2025The revised prices will come into effect on 22 September. The move follows the GST Council’s 3 September decision to withdraw the 12 per cent and 28 per cent tax slabs, streamlining rates into 5, 18, and 40 per cent categories. Essential goods, including milk and dairy products, now largely fall under the 5 per cent bracket. As a result, the company said, the price of a one-litre tetra pack of toned milk will drop from Rs 77 to Rs 75. Prices of other products such as paneer (cottage cheese), butter, ghee, milkshakes, and ice cream will also see reductions. For instance, a 500-gram pack of butter, currently priced at Rs 305, will cost Rs 285 under the revised structure.
“Most of our products now fall either under the tax-exempted category or the minimum 5 per cent GST slab, which naturally brings down consumer prices,” a Mother Dairy spokesperson said. However, the company clarified that the prices of milk sold in polypacks will remain unchanged. “Everyday milk in polypacks — such as full cream, toned, and cow milk — has always been outside the GST ambit. Therefore, the MRP of polypack milk will not be impacted,” the company’s management said.
Mother Dairy’s announcement comes shortly after Amul, another leading dairy cooperative, also said it would not be reducing the prices of polypack milk, citing its tax-free status. The price cut offers some relief to urban consumers, particularly amid rising food and commodity costs. Industry experts noted that the GST restructuring could encourage other FMCG companies to pass on the benefit to consumers in the coming weeks.
