GST 2.0: How this is going to impact the pouch milk prices

On September 3, approved by Finance Minister Nirmala Sitharaman in New Delhi, the GST Council rolled out sweeping tax cuts on everyday food items. The report stated that Ultra-High Temperature (UHT) milk now attracts zero tax, down from 5% and this further led to confusion as to whether the pouched milk prices will be impacted or not.

Amul, one of the country's most popular dairy brands, has clarified that there will be no reduction in pouch milk prices from September 22 as it already attracts zero percent GST. This came after the reports doing rounds on social media which suggested that pouch milk prices could be reduced by Rs 3 to Rs 4 under the GST 2.0 framework.



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According to a report by ANI, Jayen Mehta, Managing Director of Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul products, said, "There is no change proposed in prices of fresh pouch milk as there is no reduction in GST. There has always been zero percent GST on pouch milk."

It has been clarified by Amul that such reports are inaccurate as pouch milk has always been exempt from GST. The relief under the new tax structure will only apply to UHT milk, which will now become cheaper with the GST rate cut from 5 per cent to nil.

The report clarifies that only long life UHT milk prices will be reduced with effects from September 22 due to reduction in GST from 5 percent to Nil.



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