In a move aimed at strengthening the rural economy and supporting dairy farmers, Prime Minister Narendra Modi announced that the recent “NextGen GST Reforms” will make dairy products more affordable for all households.
The reforms, which were recently approved by the GST Council, include significant changes to the tax structure for the dairy sector.
Key changes for the dairy industry:
- UHT milk and pre-packaged paneer and chena have been made completely tax-free, with the GST rate reduced from 5% to 0%.
- The GST on other dairy products like condensed milk, butter, ghee, and cheese has been lowered from 12% to 5%.
The Prime Minister’s statement, made in response to a post by Amul Cooperative Society on X, highlighted how these reforms, alongside initiatives like the Rashtriya Gokul Mission, will continue to empower farmers, boost value addition, and ensure food security.