Amul and Mother Dairy Milk to Get Cheaper From September 22 as Government Removes 5% GST

Consumers are set to receive welcome relief on milk prices. In its latest meeting, the GST Council has decided to completely remove the 5% Goods and Services Tax (GST) on packaged milk. This move will directly benefit millions of households, bringing down the cost of Amul, Mother Dairy, and other popular milk brands. The revised zero-GST rates are expected to come into effect from September 22, 2025.
Why Has the Government Taken This Step?
Rising inflation has been a pressing concern for Indian families, with the prices of everyday essentials climbing steadily. Milk, being a staple in almost every household, has seen consistent price hikes over the past year. By removing GST, the government aims to make milk more affordable and ensure that this basic necessity remains within the reach of the common people.
Officials highlighted that the move is part of broader efforts to reduce the financial burden on households and support consumers at a time when food inflation remains high.
Current Milk Prices
At present, both Amul and Mother Dairy are selling full cream milk at around ₹69 per litre, while toned milk is priced at ₹57 per litre. In the case of buffalo milk, prices hover between ₹74 and ₹75 per litre, whereas cow milk is available at around ₹58 to ₹59 per litre.
Special variants such as Amul Tea Special are currently being sold for ₹63 per litre.
Expected New Rates After GST Removal
With the withdrawal of GST, milk prices are likely to come down by ₹3 to ₹4 per litre across categories. Here’s what consumers can expect once the new rates kick in on September 22:
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Amul Gold (Full Cream Milk): ₹69 → ₹65–66 per litre
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Amul Fresh (Toned Milk): ₹57 → ₹54–55 per litre
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Amul Tea Special: ₹63 → ₹59–60 per litre
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Buffalo Milk: ₹75 → ₹71–72 per litre
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Cow Milk: ₹58 → ₹55–57 per litre
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Mother Dairy Full Cream Milk: ₹69 → ₹65–66 per litre
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Mother Dairy Toned Milk: ₹57 → ₹55–56 per litre
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Mother Dairy Buffalo Milk: ₹74 → ₹71 per litre
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Mother Dairy Cow Milk: ₹59 → ₹56–57 per litre
How Much Will Consumers Save?
For an average family that consumes two litres of milk daily, this cut translates into a saving of ₹180 to ₹240 per month. Over a year, the total savings could exceed ₹2,000, a significant relief for middle-class and lower-income households.
When Will the New Rates Apply?
The GST removal on packaged milk will come into force from September 22, 2025. From this date onwards, all packaged milk products from Amul, Mother Dairy, and other companies will be sold without GST, leading to immediate price reduction at the retail level.
What Remains Unchanged?
It’s important to note that while milk will benefit from the GST exemption, the tax rates on other dairy products like paneer, cheese, butter, and ghee have not been altered yet. These items will continue to attract applicable GST rates until any further announcement is made.
Final Takeaway
The government’s decision to remove GST on milk marks a major step toward easing the financial strain on households. Starting September 22, milk prices across leading brands like Amul and Mother Dairy will fall by ₹3–4 per litre, ensuring direct savings for millions of families.
For consumers, this change not only lowers their daily expenses but also brings some much-needed relief at a time of high inflation.