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GST 2.0 Reform: Mother Dairy Cuts Prices of Milk, Butter, Ice Creams, and More

Now you can save some amount while you buy your daily groceries as Mother Dairy has declared a cut in the cost of select dairy products, including milk (tetra pack), butter, ice creams, and processed foods under the Safal brand. After the reforms in GST, the rate reduction has arrived, which shall come into force from September 22.

The company cited that it is passing “100 per cent of the tax benefit to our patrons, effective September 22, 2025, keeping up with the spirit of this reform.”

Manish Bandlish, Managing Director, Mother Dairy, in an official statement, cited that the cost-cutting is a step that enhances the consumption and accelerates the adoption of safe, high-quality packaged offerings.

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From the effect of this rate revision, our products come under either the exempted/nil or the lowest slab of 5 per cent. Mr Bandlish said that their company is confident that the same measure shall positively affect the whole value chain: from the rise in demand for the packaged food products, farmers shall get an advantage, further helped by the GST cuts on farm equipment and allied components, some consumers shall get the benefit of cheap cost, and effective access to the packaged dairy and processed foods.

The new GST slabs on Mother Dairy and Safal products are cited below:

Product CategoryOld GSTNew GST
Mother Dairy -Value-Added Dairy Products
Paneer5%Nil
UHT Milk5%Nil
Ghee12%5%
Cheese12%5%
Butter12%5%
Milkshakes12%5%
Ice Creams18%5%
Safal – Value-Added Horticulture Products
Tomato Puree12%5%
Pickles12%5%
Jam12%5%
Frozen Snacks12%5%
Packaged Coconut Water12%5%

In context, at present, a 1-litre tetra pack of milk (toned) costs Rs 77. No GST shall be imposed on the product under GST 2.0 that drops down the cost to Rs 75.

Likewise, the cost of 400 gms of paneer will be Rs 174, which is a reduction from Rs 180.

From 12% to 5% there will be a GST rate cut on products like ghee, butter, cheese, and milkshakes. The cost of the product shall be impacted directly via this. For example, 100 gm of butter will cost Rs 58, down from Rs 62.

Read Also: GST Rate on Milk, Paneer & Dairy Products with HSN Code

Rs 10 reduction will be there in the cost of 200gm of cheese slices that starts from September 22, down to 160.

On both a litre pouch and a tin, you can save Rs 30 if you use Mother Dairy’s Cow Ghee.

The cost of ice cream has also been reduced. A cassatta will cost Rs 60 against the usual Rs 70, and Shahi Meva Malai Tub (1 litre) will cost Rs 300, down from Rs 330.

Product CategorySKUOld MRP
(In Rs.)
New MRP
(In Rs.)
Chocobar30ml109
Vanilla Cup50ml109
Ice Candy45gm109
Butterscotch Cone100 ml3530
Choco Vanilla Cone100 ml3025
Butterscotch Combo700 ml X 2270250
Shahi Meva Malai Tub1 Litre330300
Cassatta150 ml7060
Kesar Pista Kulfi60 gm4030
Strawberry Crush Tub1 Litre330300

There will be a rate reduction from Rs 15 to Rs 5 in the Safal products, including frozen French fries, nuggets, pickle, tomato puree, and jam.

In between the joy, just understand that every day, poly pack milk (full cream milk, toned milk, cow milk, and others) has always been exempt from GST. Hence, no revision in cost will be there on it.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Arpit Kulshrestha
Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous. View more posts
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