Big Relief for Consumers: Mother Dairy Slashes Prices After GST 2.0 - Check New Rates on Paneer, Butter, Ghee, Ice Creams
Mother Dairy is passing on the benefits of the government’s GST 2.0 reforms to consumers, cutting prices across dairy and food products, effective September 22. Everyday favourites like paneer, butter, cheese, ghee, milkshakes, and ice creams will now cost less, while UHT milk sees a modest reduction.
- Republic Business
- 2 min read

In a consumer-friendly move, Mother Dairy on Tuesday announced it will reduce prices across its dairy and food portfolio following the government’s GST 2.0 reforms. The new prices will come into effect from September 22, the company said.
GST Reforms Drive Price Reduction
The price cuts follow the government’s recent GST changes, which lowered or removed taxes on essential items. Mother Dairy stated that its entire product portfolio now falls either under the zero-tax category or the lowest 5% GST slab.
“As a consumer-centric organisation, we are passing on 100% of the tax benefit to our patrons,” Manish Bandlish, managing director of Mother Dairy, said.
Impact on Popular Dairy Products
Several daily favourites will now be more affordable:
Paneer (200 gm): Rs 95 - Rs 92
Butter (500 gm): Rs 305 - Rs 285
Cheese Cubes (180 gm): Rs 145 - Rs 135
Ghee (1 litre carton): Rs 675 - Rs 645
Ice Creams: Ice Candy Rs 10 - Rs 9, Kesar Pista Kulfi Rs 40 - Rs 30, Strawberry Crush Tub Rs 330 - Rs 300
UHT milk will also see a slight reduction, with a one-litre toned tetra pack costing Rs 75, down from Rs 77. However, regular pouch milk remains unaffected, as it has always been exempt from GST.
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Safal Products Also Get Cheaper
Mother Dairy’s Safal processed foods will also benefit from lower GST rates:
Frozen Snacks (French Fries 400 gm): Rs 100 - Rs 95
Aloo Tikki 400 gm: Rs 90 - Rs 85
Tomato Puree 200 gm: Rs 27 - Rs 25
The dairy giant highlighted that all price reductions are in line with GST reforms. “Everyday poly pack milk (Full Cream Milk, Toned Milk, Cow Milk, etc) has always been exempted from GST and continues to be so, with no implications on its MRP,” the company added.
Key GST Updates for Consumers
Dairy Products: UHT Milk 5% - 0%, Paneer 5% - 0%, Ghee, Butter, Cheese, Milkshakes 12% - 5%, Ice Creams 18% - 5%
Safal Processed Foods: Frozen Snacks, Jam, Pickles, Packaged Coconut Water, Tomato Puree 12% - 5%
Pouch Milk: Already GST-exempt; no change
Mother Dairy’s move ensures that consumers directly benefit from tax reforms, making everyday essentials more affordable from next week.