GST Cut Boosts Ice-Cream Market, Organised Players See Surge in Demand

Last updated: 30 September 2025


Quick Summary
The Indian ice-cream market is experiencing a significant boost following a reduction in the Goods and Services Tax (GST) rate from 18% to 5%. This change has made ice creams more affordable, encouraging consumers to shift towards organised brands and driving growth for both established and new companies. Industry experts anticipate this will lead to substantial annual growth, with major players like Amul, HUL, and Mother Dairy already investing in new plants and product innovation to meet the increasing demand.

The recent Goods and Services Tax (GST) rate rationalisation has significantly benefited India's ice-cream industry, creating growth opportunities for both existing and new players. The GST rate for ice-creams has been slashed from 18% to 5%, making products more affordable and accelerating the shif
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FAQ :

The GST rate for ice-creams has been reduced from 18% to 5%.

The GST cut is making ice-creams more affordable, accelerating the shift from unorganised to organised players and driving incremental growth.

Gujarat Co-operative Milk Marketing Federation (GCMMF) plans new plants, Hindustan Unilever (HUL) is demerging its business and launching new products, and Mother Dairy is expanding capacity and innovating.

Analysts and industry players expect at least 10-15% annual incremental growth due to the GST cut.

Companies are innovating with smaller and family packs, strengthening distribution through offline and online channels (including quick commerce), and expanding reach into tier-2 and tier-3 cities.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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