Amul Confirms No Change in Pouch Milk Prices Amid New GST Reforms

Amul assures no impact on pouch milk prices as GST changes exempt them. The company's MD states such milk always attracted a zero percent GST rate. UHT milk, however, will see price cuts as GST reduces from 5% to nil. Finance Minister praises the GST reform as historic.

Amid forthcoming changes to the Goods and Services Tax (GST) regime on September 22, Amul has confirmed that the prices of their packaged milk products will remain unaffected. The reputable dairy brand emphasized that since pouch milk has always been subject to a zero percent GST rate, its price will not see any reduction.

In an interaction with ANI, Jayen Mehta, Managing Director of Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul products, clarified any misconceptions. He confirmed, '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.' Mehta's comments came amidst reports that suggested possible price reductions under a revised GST framework.

The GST rationalization will notably affect Ultra-High Temperature (UHT) milk, which will enjoy a reduced GST rate from 5 percent to zero, making it cheaper. The Finance Minister, Nirmala Sitharaman, hailed these GST measures announced on September 3 as a 'Next-Gen GST Reform'. These changes aim to ease living costs and stimulate economic growth. The 56th GST Council meeting resolved to streamline GST rates into two primary slabs of 5 percent and 18 percent, effectively merging the current 12 percent and 28 percent rates, a move perceived as a beneficial Diwali gift to the population.

(With inputs from agencies.)