Chandigarh, Sept 16: Mother Dairy on Tuesday announced a price cut across its dairy and food products, aligning with the revised Goods and Services Tax (GST) structure set to take effect from September 22.
The GST Council has overhauled the taxation system under what is being called GST 2.0, merging the earlier four slabs into just two—5 percent and 18 percent. The reform reduces GST rates on more than 350 items, including key food and dairy products.
Responding to the change, Mother Dairy said the benefits would be passed on directly to consumers. “We are reducing the prices of all dairy and food products that are impacted by the government’s new GST rates,” the company said in a statement. The new prices will come into effect from September 22.
The adjustment means essential products like milk, paneer, ghee, butter, cheese and milkshakes will now attract GST in the 0-5 percent range, down from 5-18 percent earlier. As a result, retail prices will fall. For instance, one litre of UHT milk (tetra pack) will be reduced to Rs 75 from Rs 77, while 500 grams of butter will now cost Rs 285 instead of Rs 305.
Other Mother Dairy products, including ice cream, as well as Safal’s processed foods, will also become cheaper under the revised structure.
