Quick Summary
In a landmark move to strengthen India's dairy sector, the 56th GST Council, in its meeting held on 3rd September 2025 approved sweeping tax rationalizations on milk and milk products. These reforms mark one of the most comprehensive overhauls of GST rates in the sector, ensuring that most dairy products are now either exempt from tax or attract only a 5% rate. Under the revised structure, effective from September 22, 2025, the following dairy items now enjoy lower or zero tax rates: Ultra
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FAQ :
The GST Council has rationalised tax rates, meaning most dairy products will now be either exempt from GST (nil-rated) or taxed at a lower rate of 5%.
UHT milk and pre-packaged and labelled paneer/chhena are now nil-rated under GST.
Butter, ghee, dairy spreads, cheese, condensed milk, milk beverages, and milk cans will now attract a 5% GST, down from 12%.
Ice cream's GST rate has been reduced from 18% to 5%.
These revised GST rates are effective from September 22, 2025.
The changes are expected to boost the dairy sector, reduce operational costs, curb adulteration, enhance competitiveness, and benefit both farmers and consumers.
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