From September 22, 2025, India’s new GST 2.0 reforms will slash taxes on several dairy products — with UHT milk and packaged paneer moving from 5% to zero tax, and butter, ghee, cheese, and milk-based beverages brought down to 5%. While this raises hopes of cheaper dairy products, Amul has clarified that the price of packaged pouch milk — the most widely consumed — will remain unchanged. Analysts note that rising input costs like cattle feed, fuel, labour, and packaging continue to weigh heavily on dairies, making immediate relief for consumers unlikely. Industry experts say the real impact of the tax rationalisation may only be seen gradually, depending on whether brands pass on the benefits to consumers.
