Post GST rates, Amul unlikely to slash prices for packaged milk

It appears that citizens rejoiced over the Goods and Services Tax reductions a bit too early. Despite the GST cuts on milk and milk products, the Gujarat Co-operative Milk Marketing Federation (GCMMF) has confirmed that prices of pouch and packaged milk will remain unchanged.

As per reports, GCMMF Managing Director Jayen Mehta clarified that prices of pouch and packaged milk will remain unchanged, as they were not subject to GST even before the reforms.

The government has only reduced the GST rate of Ultra-High Temperature (UHT) milk from 5% to Nil.

Moreover, GST on products including butter, ghee, cheese, and dairy spreads has also reduced from 12-18% (depending on type) to 5%.

The GCMMF is yet to comment on the prices of other milk products.

On Wednesday, 150 categories of products were announced to be cheaper by Mother Diary.

While ultra-high temperature milk in tetra packs will be cheaper by ₹2, and a 1-kg pack of ghee will be priced at ₹30 less.

Earlier this month, the UHT milk was declared tax-free (down from 5%), while condensed milk, butter, ghee, paneer, and cheese have moved from 12% to 5% or nil in some cases.