September 4, 2025 6:36 PM

GST rationalization brings most dairy products to nil or 5% rate

In a move to support India’s dairy sector, the 56th GST Council on Wednesday approved a rationalization of GST rates on milk and milk products. Under the new structure, which will take effect from September 22, most dairy items are now either exempt from tax or subject to a 5 per cent rate. Ultra‑High Temperature (UHT) milk and pre-packaged paneer or chhena will now attract no GST. Butter, ghee, dairy spreads, cheese, condensed milk, milk-based beverages, ice cream, and milk cans have seen ...