- By Shreyansh Mangla
- Mon, 08 Sep 2025 04:59 PM (IST)
- Source:JND
GST Rate Cut: Amul and Mother Dairy, two of India's leading dairy brands, are expected to reduce the prices of milk products starting September 22, 2025. This follows the latest GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, where it was announced that milk, paneer, and Indian breads will be fully exempt from GST, bringing their tax rates down from 5 per cent to zero.
What Are Current Milk Prices?
| Brand | Kind | Price Now (Rs/Litre) | Price After Tax Free (Rs/Litre)* |
| Amul | Gold (Full Cream Milk) | 69 | 65-66 |
| Amul | Taaza (Toned Milk) | 57 | 54-55 |
| Amul | Tea Special | 63 | 59-60 |
| Amul | Buffalo Milk | 75 | 71-72 |
| Amul | Cow's Milk | 58 | 57 |
| Mother Dairy | Full Cream Milk | 69 | 65-66 |
| Mother Dairy | Toned Milk | 57 | 55-56 |
| Mother Dairy | Buffalo Milk | 74 | 71 |
| Mother Dairy | Cow's Milk | 59 | 56-57 |
| Mother Dairy | Double Toned Milk | 51 | 48-49 |
| Mother Dairy | Token Milk (Bulk) | 54 | 51-52 |
The 56th meeting of the GST Council chaired by Union Finance Minister Nirmala Sitharaman approved significant rate cuts for the dairy sectors. The council decided to make Ultra High Temperature (UHT) milk and paneer completely tax-free by reducing the GST from 5 per cent to zero. GST on condensed milk, butter, other fats and cheese has been reduced to 5 per cent from 12 per cent.
The tax exemption will make milk products of both Amul and Mother Dairy more affordable in many categories. Assuming that a common man buys one litre of milk daily, here are the estimated savings over a year for each type of milk, based on the price reductions as follows:
| Brand | Kind | Annual Savings (Rs) |
| Amul | Buffalo Milk | 1,277.50 |
| Cow Milk | 730 | |
| Mother Dairy | Full Cream Milk | 1,259.25 |
| Toned Milk | 547.5 | |
| Buffalo Milk | 1,350.50 | |
| Cow Milk | 912.5 | |
| Double Toned Milk | 912.5 | |
| Token Milk (Wholesale) | 985.5 |
Note: These annual savings have been a result of assuming a daily purchase of one litre of milk, the above are just the estimated savings for each variety; the price may vary from market to market.
This upcoming change is likely to provide relief to millions of families across the nation, especially as the cost of living is rising and people prepare for a strong impact on their daily budget. Moreover, the recent GST cuts are not expected to cause a revenue loss for Amul and Mother Dairy. Instead, industry experts and company statements suggest that this will be a long-term win for the organised dairy sector, given the boost in demand for larger quantities will be expected with the rate cuts, which eventually will drive a boost in revenues.
(With PTI inputs)
