Packaged Milk Prices Unaffected By GST 2.0, Confirms Amul MD

There will be no impact on packaged milk prices because of Goods and Services Tax (GST) changes from September 22nd, says Amul. Amul, one of the country's most popular dairy brands, has clarified that there will be no reduction in pouch milk prices from September 22 as it already attracts zero percent GST.

Responding to a query from ANI, Jayen Mehta, Managing Director of Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul products, said,“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.”

Earlier, some media reports suggested that pouch milk prices could be reduced by Rs 3 to Rs 4 under the GST 2.0 framework.

However, Mehta clarified that such reports are inaccurate as pouch milk has always been exempt 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." said MehtaUHT 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, killing nearly all microorganisms and creating a sterile product. This process, combined with aseptic packaging like Tetra Packs, gives UHT milk a long shelf-life of several months without refrigeration.

On September 3, Finance Minister Nirmala Sitharaman announced the new GST measures, calling it a historic reform aimed at easing the cost of living and boosting economic activity. Termed the "Next-Gen GST Reform," the sweeping rate cuts are expected to benefit households, farmers, businesses, and the healthcare sector.

The 56th GST Council meeting decided to rationalise GST rates into two slabs, 5 per cent and 18 per cent by merging the existing 12 per cent and 28 per cent rates. The move is being seen as a major Diwali gift to the nation.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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