Why Only UHT Milk Gets Cheaper After GST Reform

Why Only UHT Milk Prices Will Fall After GST Reform — What Pouch Milk Buyers Should Know

With the recent GST changes taking effect from September 22, 2025, many consumers expected cheaper milk prices across the board. But Amul has clarified: only long-life UHT (Ultra Heat Treated) milk will get relief; packaged pouch milk prices remain unchanged. This blog breaks down what that means—why UHT milk is getting a tax cut, how this impacts consumers, and how you can plan smartly, especially with support from Trakintax.

What Exactly Did Amul Clarify?

Here are the main points announced by Amul / GCMMF:

1. Pouch milk has always been at 0% GST—so the new GST reform doesn’t change its tax status. Its price remains the same, no ₹3–₹4 cut as some reports suggested.
2. Long-life UHT milk (sterile milk that doesn’t need refrigeration, often sealed in tetra packs) will see GST reduced from 5% to nil (0%), making it cheaper from September 22 onwards.
3. The difference arises because UHT milk in “long-life” packaging was taxed at 5% under the older regime. After reform, it’s now tax-exempt.

Why UHT Milk Gets the Relief, but Not Pouch Milk

To understand this difference, here are quick explanations:

Milk Type	Current Status Pre-Reform	GST Under New Regime	Effect on Price
Pouch milk (fresh)	Exempt from GST (0%)	Still 0% GST	No change in tax cost; price stable
UHT milk (long-life)	5% GST	Reduced to 0% GST	Consumers to pay less

1. Pouch milk is fresh milk requiring refrigeration; Amul says it was always tax-exempt, so no further relief is possible from a tax cut perspective.
2. UHT milk is processed at very high temperature and aseptically packaged, which justifies the separate classification. Under the old slab, it faced 5% GST, so the cut to 0% is a benefit to consumers.

What This Means for Consumers

If you're a regular buyer of milk, here’s how this GST change plays out for you:

1. If you mostly buy pouch milk: you may not notice any price reduction because it was already tax-free.
2. If you buy long‐life UHT milk: you should observe a price drop from September 22, since the GST component is removed.
3. If you’re comparing UHT vs pouch: UHT milk may now be more competitive in price, and more appealing for those who prefer shelf-stable milk.

Why Some Media Reports Were Misleading

1. Some outlets had suggested pouch milk would see price cuts of ₹3–₹4 per litre. Amul clarified that’s incorrect because GST on pouch milk was already nil.
2. This shows the importance of checking official sources (Amul / GCMMF / GST Council) rather than relying on speculative reports.

How Producers & Distributors Are Affected

1. UHT milk manufacturers will adjust their invoices, packaging labels, and accounting to reflect the GST exemption.
2. Distribution & supply chain logistics for UHT milk may see small cost savings (transport/handling related to tax components).
3. Pouch milk supply chain remains unchanged tax-wise.

How to Plan as a Consumer: Smart Buying Tips

If you want to make the most of these changes, especially for milk purchases, here’s what you can do:

1. Check prices post-GST change: When buying UHT milk after September 22, compare your receipt—see that GST charge is removed.
2. Compare pouch vs UHT: If shelf storage and convenience matter, UHT might now be a better option because of reduced cost.
3. Buy in bulk for UHT if usable: Since UHT milk keeps longer, stocking up might save you frequent trips and possibly aggregate cost.
4. Be alert for anti-profiteering: Sellers must pass on GST relief; don’t accept retailers keeping old margined prices without justification.

How Trakintax Helps You Understand & Use These Changes

With tax and GST reforms, clarity and action matter. Here’s how Trakintax assists:

1. Official Insights: We track updates from GST Council, dairy boards, and brands like Amul to clarify what changes apply to which products.
2. Receipt & Bill Verification: We help you understand your receipts to see if there’s improper GST still being charged on UHT milk.
3. Consumer Awareness: We inform when to expect price changes, packaging changes, or policy notices.
4. Advice on Buying Strategy: Based on your usage (storage, consumption, budget), we help you choose between pouch and UHT milk to get better value.
5. Support With Complaints: If you find a retailer not following the exemptions, we guide you on how to report it or seek redress.

Big Picture: What This GST Cut for UHT Milk Signals

1. The GST reform is aimed at reducing cost of living especially on everyday items. UHT milk tax cut highlights how even processed grocery items are getting relief.
2. It shows a push toward simplification: clearing up which items were taxed and aligning them with consumer welfare.
3. Also, consumers may demand price cuts from other processed and packaged food items now that they see relief for something like UHT milk.

Takeaway

Only a portion of milk-product consumers will see relief — long life UHT milk will get cheaper; pouch / fresh milk remains tax-exempt as before. If you frequently buy UHT milk, check your bills from 22 September 2025 onward, compare, and ensure you’re getting the benefit of GST reduction.