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How Much Will You Save On Mother Dairy Products Under GST 2.0?

From milk tetra packs and paneer to butter, cheese, ice creams, and Safal frozen foods, Mother Dairy has announced price cuts across categories, passing on 100% of the GST reform benefit starting September 22.

MM Desk by MM Desk
September 17, 2025
in Marketing
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How Much Will You Save On Mother Dairy Products Under GST 2.0? Mother Dairy, GST 2.0, Manish Bandlish, Safal, milk price cut, paneer price cut, cheese price reduction, butter GST cut, Mother Dairy ice cream, packaged dairy India

Mother Dairy has announced a reduction in prices of select dairy and processed food products, aligning with the new GST 2.0 regime that will take effect from September 22, 2025. The company has said it is passing on “100 per cent of the tax benefit” to its consumers, a move that has been positioned as both consumer-friendly and farmer-supportive.

As per media reports, with the revised tax structure, the company’s entire portfolio will now either fall under the exempted/nil slab or the lowest slab of 5 per cent. According to Manish Bandlish, Managing Director, Mother Dairy, the measure has been designed to “boost consumption, make packaged dairy more affordable, and strengthen the entire value chain by driving demand and supporting farmers.”

In terms of pricing changes, a 1-litre toned milk tetra pack will now cost Rs 75 instead of Rs 77, while 400 grams of paneer will drop from Rs 180 to Rs 174. Products like ghee, butter, cheese, and milkshakes will now attract 5% GST instead of 12%, leading to direct price cuts. For instance, 100 grams of butter will be available at Rs 58, down from Rs 62, and 200 grams of cheese slices at Rs 160 instead of Rs 170.

Even indulgent treats like ice creams will be cheaper, with a cassata priced at Rs 60 instead of Rs 70, and the 1-litre Shahi Meva Malai Tub reduced to Rs 300 from Rs 330. Safal’s frozen foods, including French fries, nuggets, pickles, tomato puree, and jam, have also seen a cut between Rs 5 and Rs 15.

Amid the joy, remember, everyday 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.

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