New Delhi : Days after the announcement of major Goods and Services Tax (GST) reforms, Mother Dairy on Tuesday said it will pass on 100 per cent of the GST cut benefits to consumers starting September 22.
The decision follows the 56th GST Council Meeting on September 3, where the government reduced tax rates on essential food items and stationery products, slashing them from 12% and 18% slabs to 5% and nil.
Mother Dairy, a wholly owned subsidiary of the National Dairy Development Board (NDDB), announced that its entire product portfolio will now fall under the nil or lowest 5% GST slab.
From September 22, UHT milk (1 litre) will cost ₹75 instead of ₹77, milkshakes (180 ml) will drop to ₹28 from ₹30, paneer (200 gm) will reduce from ₹95 to ₹92, butter (100 gm) from ₹62 to ₹58, and cow ghee jar (1 litre) from ₹750 to ₹720. Ice creams have also seen notable cuts, with the Choco Vanilla Cone (100 ml) dropping from ₹30 to ₹25 and Strawberry Crush Tub (1 litre) from ₹330 to ₹300.
Similarly, Safal products will now reflect reduced GST rates, with Frozen French Fries (400 gm) cut from ₹100 to ₹95, Frozen Aloo Tikki (400 gm) from ₹90 to ₹85, and Coconut Water (200 ml) from ₹55 to ₹50.
Sharing the announcement, Manish Bandlish, Managing Director of Mother Dairy, said:
“The recent GST reduction across dairy and processed food products is a progressive step that will boost consumption and 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, in keeping with the spirit of this reform.”
He added that the move will positively impact the entire value chain, benefiting farmers through increased demand, while making packaged foods more affordable for consumers.
It is noteworthy that pouch milk (poly pack milk such as full cream, toned, and cow milk) has always been exempt from GST and continues to remain unaffected.