Amul milk prices will remain the same even after the new GST (Goods and Services Tax) rates take effect from September 22.
Jayen Mehta, Managing Director of Gujarat Co-operative Marketing Federation, explained that GST on pouch milk is already zero, so there will be no price reduction.
However, he said that only ultra-high temperature (UHT) milk prices will go down because the GST on UHT milk has been reduced from 5% to zero.
Earlier, some media reports incorrectly claimed that pouch milk prices would be reduced by ₹3–4 per litre after the GST changes.
What is Ultra-High Temperature (UHT) Milk?
UHT milk goes through a special process where it is heated to 135°C (275°F) for a few seconds.
This kills nearly all bacteria in the milk.
After that, the milk is packed in airtight packages like tetra packs, which helps it last for several months without refrigeration.
This type of milk is especially useful in areas where fresh milk is hard to get.
GST Structure Changed: Only Two Slabs Now
Starting September 22, the GST system will be simplified from four tax slabs to just two: 5% and 18%.
This change was announced during the 56th GST Council meeting, held on September 3, and shared by Finance Minister Nirmala Sitharaman.
Here are the key changes:
No GST on basic food items like milk, roti, paratha, and chenna.
No GST on individual health and life insurance.
33 life-saving medicines and drugs for rare or serious diseases will also be GST-free.
Luxury goods and tobacco products will now have 40% GST instead of 28%.
Vehicles like medium and large cars or motorcycles with engines above 350cc will also fall under the 40% GST slab.
