After the GST Council meeting held on 3 September, it was reported that along with many everyday things, milk prices will also decrease. In some media reports, it was claimed that 5% GST on packaged milk has been removed, which would make the milk of brands like Amul and Mother Dairy cheaper. But, Amul has clarified on this, saying that there will be no change in the prices of the common consumers who buy milk.
Amul clarification: 0% GST already on pouches milk
Managing Director of Gujarat Co-operative Milk Marketing Federation (GCMMF) (MD) Jayen Mehta has made it clear that there will be no reduction in the prices of fresh-pouted milk. He said, “Fresh -pouted milk already has 0% GST, so there has been no change in it.” This explanation is important for customers who buy milk with pouches like Amul Gold (about ₹ 69/liter) or toned milk (about ₹ 57/liter) every day. Similarly, there will be no change in the prices of full cream milk (₹ 69/liter) and toned milk (₹ 57/liter) of Mother Dairy. It has become clear that the benefit of GST reduction will not be directly available on these products.
Then which milk will be cheaper?
If the prices of fresh pouches will not decrease, then the question arises that what kind of milk will be benefited on GST cut? Jayen Mehta said that this change is only applied to ultra-high temperature (UHT) milk. The GST Council has recently reduced 5% GST on UHT milk to zero. These new rates will be implemented from September 22. UHT milk is the milk that is packed in tetrapac. These are particularly processed so that they can be protected for a long time without a refrigerator. They usually come in thick packets compared to normal pouches of milk. UHT milk is often used during long visits or in areas where power supply or refrigeration is not facilitated. Thus, the reduction in GST will provide direct benefit to consumers who buy UHT milk, not fresh pouches milk.
Confusion situation and media reports
After the GST council meeting, there was confusion in some media reports that GST has been abolished on all types of packets, which will fall in prices. But Amul’s explanation has removed this confusion. This shows how important it is to understand the information about changes in GST rates in the correct context. In short, if you are dependent on fresh pouch milk for everyday use, there will be no change in their prices. But, if you use UHT milk, you can see a decrease in their prices from 22 September. This clarity will help consumers to take the right decision.
