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Key Points

Amul has clarified that pouch milk prices will not see any reduction despite recent GST changes. The company's managing director explained that fresh pouch milk has always had zero GST, so there's no change. However, UHT milk products will become cheaper as their GST rate drops from 5% to zero. This clarification comes after some media reports incorrectly suggested price cuts for all packaged milk.

Key Points: Amul MD Clarifies No Pouch Milk Price Cut as GST Already Zero

  • Pouch milk prices remain unchanged with zero GST unchanged
  • UHT milk prices to drop with GST cut from 5% to nil
  • Amul clarifies media reports of price cuts were inaccurate
  • New GST structure benefits long-life milk products only
2 min read

No impact on pouched milk prices because of GST rationalisation as GST on it is already Nil; UHT milk prices will come down as GST on that reduced from 5% to Nil: Amul MD

Amul MD Jayen Mehta clarifies pouch milk prices won't change as GST remains zero, while UHT milk gets cheaper with GST cut from 5% to nil from September 22.

"There is no change proposed in prices of fresh pouch milk as there is no reduction in GST - Jayen Mehta, Amul MD"

New Delhi, September 11

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 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, 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.

- ANI

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Reader Comments

R
Rohit P
Most Indian households use fresh pouch milk daily. UHT is more expensive anyway, so this GST change won't benefit the common man much. Disappointing!
M
Michael C
As an expat in India, I mostly use UHT milk for convenience. Happy to see prices coming down - every bit helps with inflation these days!
A
Ananya R
Thank you for this clarification! The media should verify facts before spreading misinformation about price cuts. Many families got their hopes up unnecessarily.
S
Suresh O
UHT milk tastes different from fresh milk. Most Indians prefer the taste of fresh milk anyway. This GST change is good but limited impact for majority.
K
Kavya N
At least the government is trying to rationalize GST rates. Step by step reforms are better than no reforms. Hope more essential items get cheaper in future! 🙏

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