UHT Milk becomes GST free: How much cheaper will such milk products become?

In the GST Council meeting, ultra high temperature milk has been made tax free. This can provide great relief to the middle class. According to an estimate, milk prices can fall by 2 to 4 rupees from September 22. Let us also tell you what the prices of Amul and Mother Dairy milk can be.

UHT i.e. ultra heat temperature milk has now been made GST free. Now UHT milk and other related products will become very cheap. Currently, 5% GST is levied on it. Which has been reduced to 0%? The new rates will be applicable from 22 September i.e. the first day of Navratri. By the way, GST on condensed milk has been reduced from 12 to 5%. There has been no change on pasteurized milk. 5% GST will be applicable on it. Let us try to understand what kind of announcement has been made by the government on milk. Also what kind of statement has come from Mother Dairy on this.

This milk is GST free

GST has been completely removed from milk with ultra-heat temperature. Till now, 5% GST was being levied on this type of milk. From September 22, no GST will be levied on it. Actually, milk available in tetra packs from companies like Mother Dairy and Amul has been made GST free. According to the information, milk like Amul's Gold, Taza, Calci and Slim 'n' Trim come under UHT. No GST will be levied on them. On the other hand, Mother Dairy provides toned milk and cow milk options in tetra packs, which come under the purview of UHT.

What are UHT products?

UHT milk products are dairy products such as milk, cream and flavoured beverages that have undergone ultra-high temperature (UHT) processing. This is a method where milk is heated to high temperatures for a short period of time to kill bacteria and extend its shelf life by several months, unless opened, without refrigeration. These products come in sterilized, aseptic containers and include various types of milk (full-fat, toned, lactose-free) as well as other dairy food products such as puddings, custards and whey-based beverages.

Mother Dairy's statement

Mother Dairy on Thursday said it will pass on the benefits of GST cuts on various products to consumers. Mother Dairy is one of the leading dairy companies in the country. Its turnover was Rs 17,500 crore in the last financial year. Responding to the GST Council's decision, Mother Dairy MD Manish Bandlish said that we appreciate the central government's decision to reduce GST rates on various dairy products including paneer, cheese, ghee, butter, UHT milk, milk-based beverages and ice cream. Bandlish said that this is a big boost especially for the packaged category, which is becoming increasingly popular in Indian homes and their demand will increase further in the future.

He assured that Mother Dairy is committed to ensure that the benefits of this reform are effectively passed on to the consumers. Bandlish said that reducing the tax slab will promote wider adoption of packaged, value-added dairy products, increase consumer preference for safe and quality products and help more families enjoy nutritious dairy products at better prices. The reduction in GST rates on a wide range of dairy products will create better market opportunities for farmers.

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