<p>New Delhi: The government on Thursday said the decision to ensure that most dairy products are now either exempt from tax or attract only a 5 per cent rate will boost demand in the Rs 19 lakh crore industry.</p>.<p>In an official statement, the Ministry of Fisheries, Animal Husbandry & Dairying said the 56th GST Council, in its meeting held on Wednesday, approved sweeping tax rationalisations on <a href="https://www.deccanherald.com/tags/dairy-products">milk and milk products</a>.</p>.<p>"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 per cent rate," it added.</p>.<p>Under the revised structure, effective from September 22, 2025, the GST rate on ultra-high temperature (UHT) milk is reduced to nil from 5 per cent.</p>.<p>The GST on paneer / chhena (Pre-packaged and labelled) has been reduced from 5 per cent to nil.</p>.<p>Butter, ghee, dairy spreads, cheese, condensed milk, milk-based beverages will attract 5 per cent GST from 12 per cent.</p>.<p>The GST on ice cream will come down to 5 per cent from 18 per cent. Milk cans will attract 5 per cent GST against 12 per cent, the statement said.</p>.<p>"This significant tax rationalisation is expected to boost the dairy sector and extend benefits to both farmers and consumers, contributing to the overall socio-economic development in the country," the ministry said.</p>.<p>The reform will directly benefit over 8 crore rural farmer families, particularly small, marginal and landless labourers engaged in rearing milch animals for their livelihoods.</p>.Explained | Companies and products covered by India's current GST regime .<p>The ministry said that lower taxation will help reduce operational costs and curb adulteration.</p>.<p>India is the world’s largest milk producer, with an output of 239 million tonnes in 2023–24, accounting for about 24 per cent of global milk production.</p>.<p>The overall market size of the Indian dairy sector is estimated at Rs 18.98 lakh crore in 2024.</p>.<p>"These recent <a href="https://www.deccanherald.com/tags/gst">GST</a> reforms will give a major boost in further enhancing productivity and competitiveness of the sector while ensuring sustainable livelihoods," the ministry said.</p>
<p>New Delhi: The government on Thursday said the decision to ensure that most dairy products are now either exempt from tax or attract only a 5 per cent rate will boost demand in the Rs 19 lakh crore industry.</p>.<p>In an official statement, the Ministry of Fisheries, Animal Husbandry & Dairying said the 56th GST Council, in its meeting held on Wednesday, approved sweeping tax rationalisations on <a href="https://www.deccanherald.com/tags/dairy-products">milk and milk products</a>.</p>.<p>"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 per cent rate," it added.</p>.<p>Under the revised structure, effective from September 22, 2025, the GST rate on ultra-high temperature (UHT) milk is reduced to nil from 5 per cent.</p>.<p>The GST on paneer / chhena (Pre-packaged and labelled) has been reduced from 5 per cent to nil.</p>.<p>Butter, ghee, dairy spreads, cheese, condensed milk, milk-based beverages will attract 5 per cent GST from 12 per cent.</p>.<p>The GST on ice cream will come down to 5 per cent from 18 per cent. Milk cans will attract 5 per cent GST against 12 per cent, the statement said.</p>.<p>"This significant tax rationalisation is expected to boost the dairy sector and extend benefits to both farmers and consumers, contributing to the overall socio-economic development in the country," the ministry said.</p>.<p>The reform will directly benefit over 8 crore rural farmer families, particularly small, marginal and landless labourers engaged in rearing milch animals for their livelihoods.</p>.Explained | Companies and products covered by India's current GST regime .<p>The ministry said that lower taxation will help reduce operational costs and curb adulteration.</p>.<p>India is the world’s largest milk producer, with an output of 239 million tonnes in 2023–24, accounting for about 24 per cent of global milk production.</p>.<p>The overall market size of the Indian dairy sector is estimated at Rs 18.98 lakh crore in 2024.</p>.<p>"These recent <a href="https://www.deccanherald.com/tags/gst">GST</a> reforms will give a major boost in further enhancing productivity and competitiveness of the sector while ensuring sustainable livelihoods," the ministry said.</p>