GST 2.0: Mother Dairy Decides To Pass "100% Tax Benefit", Slash Prices
The company said it is passing "100 per cent of the tax benefit to our patrons" as new GST reform comes into effect from September 22.
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Price reductions follow recent GST reforms implementation.
New Delhi:
Consumers can expect to spend less on daily essentials as Mother Dairy announces price cuts across various dairy products, including tetra pack milk, butter, ice creams, and processed foods under the Safal brand. These price reductions come in response to the latest Goods and Services Tax (GST) reforms scheduled to take effect from September 22.
The company has confirmed it will transfer "100 per cent of the tax benefit to our patrons, effective September 22, 2025, aligning with the spirit of this reform."
According to Manish Bandlish, Managing Director of Mother Dairy, this price reduction initiative will "significantly boost consumption and accelerate the adoption of safe, high-quality packaged offerings," as stated in an official announcement.
"Following this change, our entire product range now falls either under the exempted/nil category or the lowest 5 per cent slab. We believe this measure will create positive impacts throughout the value chain: farmers will benefit from heightened demand for packaged food products, further enhanced by GST reductions on agricultural equipment and related components, while consumers will enjoy more affordable pricing and improved access to packaged dairy and processed foods," Mr Bandlish explained.
Overview of new GST slabs for Mother Dairy and Safal products:
Revised GST rates on Mother Dairy products
For consumers, this means tangible savings. A 1 litre tetra pack of toned milk currently priced at Rs 77 will cost Rs 75 after GST removal.
Similarly, 400 grams of paneer will be available for Rs 174, reduced from Rs 180.
Products such as ghee, butter, cheese, and milkshakes will now attract only 5 per cent GST, down from the previous 12 per cent. This directly impacts consumer prices - 100 grams of butter will cost Rs 58, reduced from Rs 62.
The price of a 200 gram pack of cheese slices will decrease by Rs 10 starting September 22, bringing it down to Rs 160.
Users of Mother Dairy's Cow Ghee can save Rs 30 on both one-litre pouches and tins.
Ice cream lovers have reason to celebrate as prices across this category have been reduced. A cassatta will now cost Rs 60 instead of Rs 70, while the Shahi Meva Malai Tub (1 litre) will be priced at Rs 300, down from Rs 330.
Safal products, including frozen French fries, nuggets, pickles, tomato puree, and jam, have undergone price reductions ranging from Rs 5 to Rs 15.
It's worth noting that everyday poly pack milk varieties (full cream milk, toned milk, cow milk, and others) have always been GST-exempt. Therefore, prices for these products will remain unchanged.