Sweeping GST Reforms to Boost Indian Dairy Sector
The Indian government has reduced GST on many dairy products to stimulate an industry worth Rs 19 lakh crore. The reforms will lower operational costs for farmers, potentially curbing adulteration, and foster socio-economic development across rural communities. This strategic move is expected to enhance the productivity and competitiveness of India's dairy sector.
- Country:
- India
The Indian government's recent decision to reduce GST on dairy products is set to invigorate an industry valued at Rs 19 lakh crore. Announced by the Ministry of Fisheries, Animal Husbandry & Dairying, the measure was approved during the 56th GST Council meeting.
The revised GST structure, effective from September 22, 2025, nullifies tax on ultra-high temperature (UHT) milk and reduces GST on items like paneer, butter, ghee, dairy spreads, and condensed milk. These changes aim to significantly boost the sector by lowering operational expenses for farmers and decreasing adulteration.
As the world's largest milk producer, India's dairy sector is crucial for its economy. The GST reforms are poised to support over 8 crore rural families, particularly benefiting small-scale farmers and contributing to the sector's productivity and competitiveness.
(With inputs from agencies.)
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