One of the leading dairy brands in India, Amul has announced that there will be no impact on packaged milk prices due to Goods and Services Tax (GST) changes effective from September 22. The clarification comes as Next-Gen GST Reforms announced on September 4 will be effective soon and there were speculations regarding the changes in milk prices. The company stated that there will be no changes in pouch milk prices as it already attracts zero percent GST.
Will The Price Change?
Jayen Mehta, Managing Director of Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul products told ANI, “There is no change proposed in prices of fresh pouch milk as there is no reduction in GST. It has always been zero percent GST on pouch milk.”
Notably, some media reports claimed that pouch milk prices could be reduced by Rs 3 to Rs 4 under the GST 2.0 framework. However, Mehta has quashed those reports, calling them “inaccurate” as pouch milk has always been exempted from GST.
The relief under the new tax structure will only apply to UHT milk, which will now become cheaper with the GST rate cut from 5 per cent to nil. “Only longlife UHT milk prices will be reduced with effect from September 22 due to reduction in GST from 5 per cent to Nil,” clarified Mehta.
UHT in milk stands for Ultra-High Temperature (or Ultra Heat Treatment) processing, which involves heating milk to at least 135°C (275°F) for a few seconds.
Key Takeaways From Next-Gen GST Reforms
GST simplified to a two-slab structure (5% & 18%)
GST reforms cut taxes on household essentials (soaps, toothpaste, Indian breads) to 5% or Nil boosting affordability.
Life-saving drugs, medicines reduced from 12% to Nil or 5% making healthcare affordable.
Two-wheelers, small cars, TVs, ACs, cement cut from 28% to 18% bringing relief to middle-class. Farm machinery, irrigation equipment cut from 12% to 5%, reducing farming costs.
Tobacco, pan masala, aerated drinks, and luxury goods taxed at 40.
