Days after the announcement of new Goods and Services Tax (GST) reforms, Mother Dairy on Tuesday said it will pass on 100 per cent of GST cut benefits to consumers effective September 22.
The GST reforms were announced at the 56th GST Council Meeting on September 3. The reduced prices will come into effect from Monday next when the new GST slabs will apply on products.
The development came on the back of a major revamp in the GST, under which the government has provided relief to citizens by reducing taxes on essential food items and stationery products. The tax rates were slashed to 5 per cent and nil, from the earlier 12 per cent and 18 per cent slab.
A wholly owned subsidiary of National Dairy Development Board (NDDB), Mother Dairy said with the new pricing the company’s entire portfolio of products now falls under nil or lowest 5 per cent slab of the GST.
Effective from September 22, the price of Ultra High Temperature (UHT) milk (1 litre) will now be Rs 75 instead of Rs 77.
Milkshakes (180 ml) have come down from Rs 30 to Rs 28. Paneer (200 gm) has reduced from Rs 95 to Rs 92. Butter (100 gm) has dropped from Rs 62 to Rs 58. Cow Ghee Jar (1 litre) has decreased significantly from Rs 750 to Rs 720. Ice Creams saw notable cuts: for example, Choco Vanilla Cone (100 ml) reduced from Rs 30 to Rs 25 and Strawberry Crush Tub (1 litre) from Rs 330 to Rs 300.
For Safal products, the GST has been uniformly reduced from 12 per cent to 5 per cent across categories like frozen snacks, jams, pickles, coconut water, and tomato puree.
Reflecting this, the Frozen French fries (400 gm) dropped from Rs 100 to Rs 95. Frozen aloo tikki (400 gm) fell from Rs 90 to Rs 85. Frozen nuggets (300 gm) reduced from Rs 110 to Rs 105. Lime pickle (400 gm) went down from Rs 130 to Rs 120. Coconut Water (200 ml) decreased from Rs 55 to Rs 50. Mixed Fruit Jam (500 gm) saw a reduction from Rs 180 to Rs 165.
Sharing the announcement, Manish Bandlish, Managing Director, Mother Dairy, said, “The recent GST reduction across a wide range of dairy and processed food products represents a progressive step that will significantly boost consumption and accelerate the adoption of safe, high-quality packaged offerings. As a consumer-centric organisation, we are passing on 100 per cent of the tax benefit to our patrons, effective September 22, 2025, keeping up with the spirit of this reform.”
He further said, “With this change, our entire portfolio now falls either under the exempted/nil or the lowest slab of 5 per cent. We are confident this measure will positively impact the entire value chain: farmers will benefit from increased demand for packaged food products, further supported by GST reductions on farm equipment and allied components, while consumers will gain from affordable pricing and greater access to packaged dairy and processed foods.”
It is pertinent to note that Pouch Milk – the everyday poly pack milk (Full Cream Milk, Toned Milk, Cow Milk, etc.) – has always been exempted from GST and continues to be so, with no implications on its MRP.