By How Much Milk and Dairy Products will Get Cheaper as Government Removes GST on UHT Milk
From September 22, 2025, UHT milk becomes GST-free; condensed milk, butter, ghee, paneer and cheese also see reduced tax rates
Consumers will soon get some relief on their grocery bills, as the central government has scrapped the 5% GST on UHT (Ultra-High Temperature) processed milk, effective September 22, 2025—the first day of Navratri. This means popular tetra pack variants like Amul Gold, Taja, Calci, Slim ‘n’ Trim, and Mother Dairy’s toned and cow’s milk will now be tax-free, making them cheaper for buyers.
In addition, GST on condensed milk has been reduced from 12% to 5%, further lowering prices for packaged dairy lovers. However, pasteurised milk, which already attracts 5% GST, will see no change in price. The government’s move is expected to encourage higher adoption of packaged dairy, benefiting both consumers and farmers by ensuring wider access to affordable, long-lasting products.
What are UHT products?
UHT dairy items—including milk, cream, pudding, custard, and whey-based drinks—are processed at very high temperatures to eliminate bacteria. This method extends shelf life for several months without refrigeration, making them popular in urban households. These products are sold in sterilised, aseptic packaging.
Wider GST cuts on essentials
The government has also slashed GST rates across a broad basket of goods:
- Dairy products: Condensed milk now at 5%, while butter, ghee, paneer and cheese have also moved from 12% to 5% or nil in some cases.
- Staple foods: Items like malt, starches, pasta, cornflakes, biscuits, chocolates and cocoa products will now attract just 5%, down from 12–18%.
- Dry fruits and nuts: Almonds, pistachios, hazelnuts, cashews, and dates shift from 12% to 5%.
- Sugar and confectionery: Refined sugar, syrups, toffees, and candy drop to the 5% slab.
- Other packaged foods: Vegetable oils, edible spreads, sausages, meat preparations, fish products, and malt extract-based foods have also been reduced to 5%.
With these revisions, food and daily essentials are expected to become more affordable, giving consumers relief while boosting demand in the FMCG and dairy sectors.
Disclaimer: The information provided in this article is based on government announcements regarding GST revisions effective September 22, 2025. Actual retail prices of milk, dairy products, and other goods may vary depending on brand, location, packaging, and distribution costs. Readers are advised to check updated prices with local retailers or official sources before making purchase decisions.
