Amul cuts prices of 700 products after GST revision:One-litre ghee price drops by ₹40; new rates effective from September 22

Amul has announced a price reduction across more than 700 products, including ghee, butter, cheese, ice cream, and other dairy items. The new prices will come into effect from September 22, 2025. The company said the move follows revisions in the Goods and Services Tax (GST) slab. This comes days after Mother Dairy slashed prices on September 16, bringing down rates of products by ₹2 to ₹30. The reduction covered tetra pack milk, paneer, cheese, ghee, butter, ice cream, and several processed foods sold under its Safal brand. Amul’s one-litre ghee will be ₹40 cheaper Amul’s pouch milk will not become cheaper Jayan Mehta, Managing Director of Gujarat Co-operative Milk Marketing Federation, clarified that since pouch milk already attracts zero GST, there will be no change in its price. 100% benefit of GST reduction passed on to customers Amul said the price cuts are aimed at passing on the full benefit of the revised GST slabs to consumers. The company added that per capita consumption of dairy products in India remains low, and reduced prices are expected to boost demand for items like ice cream, cheese, and butter, thereby increasing turnover. Only two GST slabs instead of fourFrom September 22, the GST structure will be simplified to two slabs—5% and 18%—instead of the existing four. This change will make everyday essentials like soap and shampoo, as well as big-ticket items such as ACs and cars, cheaper. The decision was taken during the 56th GST Council meeting. Finance Minister Nirmala Sitharaman announced the changes on September 3. She further stated that milk, bread, paratha, chhena, and several other food items will remain GST-free. Individual health and life insurance will also not be taxed. In addition, 33 life-saving drugs and medicines for rare and serious diseases have been exempted from GST. Luxury items and tobacco products, however, will attract a higher rate of 40% instead of 28%. Medium and large cars, along with motorcycles with engines above 350cc, will also fall under this slab.