GST 2.0: Mother Dairy Decides To Pass "100% Tax Benefit", Slash Prices

Get ready to save a few extra rupees during your daily grocery run, as Mother Dairy has announced a reduction in the prices of select dairy products, including milk (tetra pack), butter, ice creams, and processed foods under the Safal brand. The price cut comes following the latest Goods and Services Tax (GST) reforms, which will come into effect from September 22.

The company said it is passing "100 per cent of the tax benefit to our patrons, effective September 22, 2025, keeping up with the spirit of this reform."

The price reduction is a step that will "significantly boost consumption and accelerate the adoption of safe, high-quality packaged offerings," said Manish Bandlish, Managing Director, Mother Dairy, in an official statement.

"With this change, our entire portfolio now falls either under the exempted/nil or the lowest slab of 5 per cent. We are confident this measure will positively impact the entire value chain: farmers will benefit from increased demand for packaged food products, further supported by GST reductions on farm equipment and allied components, while consumers will gain from affordable pricing and greater access to packaged dairy and processed foods," Mr Bandlish said.

A look at the new GST slabs on Mother Dairy and Safal products:

New GST rates on Mother Dairy products

Let's put it in context for you, the consumer. A 1 litre tetra pack of milk (toned) currently costs Rs 77. With GST 2.0, no GST will be levied on the product, bringing the cost down to Rs 75.

Similarly, 400 gms of paneer will cost Rs 174, down from Rs 180.

Products like ghee, butter, cheese, and milkshakes will now draw 5 per cent GST, down from 12 per cent. This will have a direct impact on the product cost. For instance, 100 gm of butter will cost Rs 58, down from Rs 62.

The price of 200 gm of cheese slices will be reduced by Rs 10 starting September 22, down to 160.

If you use Mother Dairy's Cow Ghee, you can now save Rs 30 on both a litre pouch and a tin.

Ice creams will now bring double the joy as their prices have also been slashed. A cassatta will cost Rs 60 against the usual Rs 70, and Shahi Meva Malai Tub (1 litre) will cost Rs 300, down from Rs 330.

Safal products, including frozen French fries, nuggets, pickle, tomato puree, and jam, have seen a price cut between Rs 5 and Rs 15.

Amid the joy, remember, every day poly pack milk (full cream milk, toned milk, cow milk, and others) has always been exempted from GST. Therefore, there will be no change in its price.