India’s leading dairy companies, Amul and Mother Dairy, have confirmed that the prices of pouch milk will remain unchanged despite the recent Goods and Services Tax (GST) overhaul. The reason for this is that pouch milk is exempt from GST, and therefore, the recent tax changes do not affect its pricing. Jayen Mehta, Managing Director of Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul products, stated that there is no change proposed in the prices of fresh pouch milk as it has always been exempt from GST.
Earlier, some media reports suggested that pouch milk prices could be reduced by Rs 3 to Rs 4 under the GST 2.0 framework, but Mehta clarified that such reports are inaccurate. The relief under the new tax structure will only apply to UHT (Ultra-High Temperature) milk, which will now become cheaper with the GST rate cut from 5 percent to nil. UHT milk has a long shelf-life of several months without refrigeration due to its processing and packaging.
The new GST measures, announced by Finance Minister Nirmala Sitharaman on September 3, aim to ease the cost of living and boost economic activity. The 56th GST Council meeting decided to rationalize GST rates into two slabs, 5 percent and 18 percent, by merging the existing 12 percent and 28 percent rates. This move is seen as a major benefit to households, farmers, businesses, and the healthcare sector.
Mother Dairy has unveiled its revised pricing, cutting prices on UHT milk and other dairy products, while everyday pouch milk remains unaffected. Amul has also ruled out any price cut for pouch milk, stating that only long-life UHT milk will get GST relief. The company has confirmed that the prices of Full Cream, Toned, and Cow Milk will remain the same. With this clarification, millions of households that rely on pouch milk can breathe a sigh of relief, knowing that their daily staple will remain affordable. As a reliable and trusted news source, it is essential to provide accurate information to avoid confusion and speculation.