Milk will now cost less across India after the government removed the Goods and Services Tax (GST) on packaged milk. The decision was taken at the 56th GST Council meeting on September 3, 2025, and comes into effect today, September 22.
Until now, Ultra High Temperature (UHT) milk carried a 5 percent GST. With the new change, it is completely tax-free. The government has said the move is aimed at making quality packaged milk more affordable for households. Officials noted that milk is a daily necessity, and removing the tax will directly benefit families.
Leading dairy brands have responded by cutting prices. Mother Dairy has announced lower rates for packaged milk in Delhi-NCR and other key markets. The company said it is passing the benefit of the GST cut to consumers immediately.
| Product Category | Product | Old GST | New GST |
|---|---|---|---|
| Mother Dairy – Value-Added Dairy Products | UHT Milk (Tetra Pack) | 5% | 0% |
| Mother Dairy – Value-Added Dairy Products | Paneer | 5% | 0% |
| Mother Dairy – Value-Added Dairy Products | Ghee | 12% | 5% |
| Mother Dairy – Value-Added Dairy Products | Butter | 12% | 5% |
| Mother Dairy – Value-Added Dairy Products | Cheese | 12% | 5% |
| Mother Dairy – Value-Added Dairy Products | Milkshakes | 12% | 5% |
| Mother Dairy – Value-Added Dairy Products | Ice Creams | 18% | 5% |
| Safal – Value-Added Horticulture Products | Frozen Snacks | 12% | 5% |
| Safal – Value-Added Horticulture Products | Jam | 12% | 5% |
| Safal – Value-Added Horticulture Products | Pickles | 12% | 5% |
| Safal – Value-Added Horticulture Products | Packaged Coconut Water | 12% | 5% |
| Safal – Value-Added Horticulture Products | Tomato Puree | 12% | 5% |
Amul, India’s largest milk brand, has also confirmed a price reduction. The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets Amul, said new rates for its packaged milk products will apply from today. The company said the tax cut will be reflected across its distribution network, ensuring customers see the benefit quickly.
Key Prices Cut In Various Amul Products:
| Product | Old MRP | New MRP (effective Sep 22, 2025) | Reduction |
|---|---|---|---|
| Amul Butter (100g) | ₹62 | ₹58 | ₹4 |
| Amul Ghee (1L) | ₹650 | ₹610 | ₹40 |
| Amul Processed Cheese Block (1kg) | ₹575 | ₹545 | ₹30 |
| Frozen Paneer (200g) | ₹99 | ₹95 | ₹4 |
| Amul Taaza Toned UHT Milk (1L) | ~₹60 (varies by region) | Reduced by ~2.6% (₹3/L approx.) | ~₹3 |
| Amul Gold Standardised UHT Milk (1L) | ~₹70 (varies by region) | Reduced by ~3.6% (₹3/L approx.) | ~₹3 |
In Karnataka, the state-run Nandini brand has also revised prices. A one-litre pack of Goodlife milk, which previously sold for Rs 70, is now priced at Rs 68. The federation said similar changes are being made across its packaged milk range.
The government’s decision to remove GST on packaged milk marks a major relief for consumers, especially at a time when household budgets remain under pressure. With Amul, Mother Dairy, and Nandini all reducing rates, families can expect to pay less for their daily milk supply starting today.
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