GST Cuts may Bring Relief to Dairy Products

In a major boost for the dairy sector, the GST Council is reportedly preparing a reduction in GST rates on key household consumables—potentially extending benefits to milk, curd, paneer, and other dairy items. The proposal, announced shortly after income-tax relief to middle-class consumers, would ease the tax burden on pre-packaged dairy, currently attracting up to 5% GST. The move aims to bring down retail prices and boost demand for value-added dairy products—a segment key to the sector’s growth.

Industry insiders underscore the importance: lower GST will directly benefit consumers, improving affordability for staple dairy items, while also supporting front-line DDAs and co-operatives. The likely rationalization could also spur investments across the cold chain and product innovation, enhancing supply resilience and scaling up export readiness.

Industry Insight:
A GST rate cut on dairy staples would strengthen rural milk off-take and enhance competitiveness of value-added products. It’s a timely move that supports affordability while also incentivizing investment in the dairy value chain.

Source : Dairynews7x7 July 3rd 2025