Mother Dairy & Amul Milk Prices Cut | New GST 2.0 Rate Card Effective September 22, 2025

The Indian government has rolled out a landmark change in the Goods and Services Tax (GST) regime on dairy products. Effective September 22, 2025, the new GST 2.0 rate card makes essential items like milk, paneer, butter, and ghee more affordable.

This relief was announced during the 56th GST Council Meeting held on September 3, 2025, where the council approved a sharp cut in GST rates on dairy essentials. With Amul and Mother Dairy implementing the new prices from today, households across India will see direct savings on daily essentials.

Key GST 2.0 Changes on Dairy Products

The government’s GST cuts aim to reduce household spending on essential commodities. Below are the revised rates:

• UHT (Ultra High Temperature) Milk: 5% → 0% (tax-free)

• Paneer: 12% → 0% (tax-free)

• Butter, Ghee, Cheese, Dairy Fats: 12% → 5%

• Milk Cans (Iron, Steel, Aluminium): 12% → 5%

• Plant-Based Milk Beverages (except soya milk): 18% → 5%

This major reform under GST 2.0 is expected to not only bring relief to families but also boost dairy demand and support farmers.

Mother Dairy GST Price Cut – Effective September 22, 2025

Mother Dairy has confirmed that it will pass on the benefits of the GST reduction directly to consumers. The value-added dairy products and Safal horticulture range are now available at lower prices.

CategoryProductOld GSTNew GSTDairyUHT Milk (Tetra Pack)5%0%DairyPaneer12%0%DairyGhee12%5%DairyButter12%5%DairyCheese12%5%DairyMilkshakes12%5%DairyIce Creams18%5%SafalFrozen Snacks12%5%SafalJam12%5%SafalPickles12%5%SafalPackaged Coconut Water12%5%SafalTomato Puree12%5%

Consumers can now expect cheaper Mother Dairy milk, paneer, ice creams, and packaged food items across retail outlets and online stores.

Amul GST Price Cut – New Rates Effective September 22, 2025

The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets Amul, has announced a price reduction across 700+ product SKUs. These include popular categories like ghee, butter, ice cream, cheese, paneer, and bakery items.

Key Amul Price Reductions (from today):

• Amul Butter (100g): ₹62 → ₹58 (₹4 cut)

• Amul Ghee (1L): ₹650 → ₹610 (₹40 cut)

• Amul Cheese Block (1kg): ₹575 → ₹545 (₹30 cut)

• Frozen Paneer (200g): ₹99 → ₹95 (₹4 cut)

• Amul Taaza UHT Milk (1L): Price reduced by ~₹3/L (~2.6%)

• Amul Gold UHT Milk (1L): Price reduced by ~₹3/L (~3.6%)

These cuts will be visible across kirana stores, supermarkets, and e-commerce platforms starting September 22, 2025.

Why This GST Cut on Dairy Products is Important

1. Household Relief – Milk, paneer, and butter are consumed daily in most Indian homes. Lower GST means reduced monthly expenses.

2. Boost to Farmers & Dairy Cooperatives – Higher demand due to affordable pricing benefits farmers and strengthens the cooperative model.

3. Nutritional Access – Milk and paneer are key protein sources. The cuts make them more affordable for middle- and lower-income families.

4. Control on Food Inflation – This reform aligns with the government’s focus on controlling inflation in essential commodities.

Consumer Impact of GST 2.0 on Dairy

• Immediate Savings: Families will save ~₹3 per liter on UHT milk and ~₹40 on 1L ghee packs.

• Cheaper Packaged Foods: Safal frozen snacks, jams, and pickles will cost less.

• Affordable Dairy Beverages: Milkshakes and ice creams will be available at reduced rates.

• National Reach: Price reductions apply across retail, wholesale, and online channels.

FAQs on GST Cut and Dairy Prices

Q1. What is the new GST rate on packaged milk?
A1. Packaged UHT milk is now 0% GST (tax-free).

Q2. Is paneer tax-free after GST 2.0?
A2. Yes, paneer now attracts 0% GST.

Q3. From when are the new GST dairy rates effective?
A3. The revised GST 2.0 dairy rates are effective from September 22, 2025.

Q4. How much has Amul Butter price reduced?
A4. Amul Butter (100g) is now ₹58, down from ₹62.

Q5. Will milk prices reduce after GST cuts?
A5. Yes, Amul and Mother Dairy UHT milk prices have reduced by approx. ₹3 per liter.

Conclusion

The GST 2.0 reform on dairy products is a game-changer for Indian households. By slashing GST on milk, paneer, butter, ghee, and cheese, the government has ensured immediate relief for families and farmers alike. With Amul and Mother Dairy leading the price cut from September 22, 2025, consumers can expect affordable dairy essentials across the country.