New Delhi, Sep 16 (PTI) Mother Dairy on Tuesday said it will pass on 100 per cent GST reduction benefits to consumers and most of its products including value-added dairy products and processed foods (under Safal brand) will become cheaper with effect from September 22.

Mother Dairy, a wholly-owned subsidiary of National Dairy Development Board (NDDB), said that prices of paneer (200 gms) will come down from Rs 95 to Rs 92, Ghee Carton Pack (1 litre) from Rs 675 to Rs 645, and butter 100 gm from Rs 62 to Rs 58.

Similarly, the prices of various other products including Cassatta Ice Cream, pickles, tomato puree and Safal Frozen French Fries too will come down.

"The recent GST reduction across a wide range of dairy and processed food products represents a progressive step that will significantly boost consumption and accelerate the adoption of safe, high-quality packaged offerings.

"As a consumer-centric organisation, we are passing on 100 per cent of the tax benefit to our patrons, effective September 22, 2025, keeping up with the spirit of this reform," Manish Bandlish, Managing Director, Mother Dairy, said.

Mother Dairy's entire portfolio now falls either under the exempted/nil or the lowest slab of 5 per cent.

"We are confident this measure will positively impact the entire value chain: farmers will benefit from increased demand for packaged food products, further supported by GST reductions on farm equipment and allied components, while consumers will gain from affordable pricing and greater access to packaged dairy and processed foods," he added.

As part of the reform process, the GST Council has introduced only 5 and 28 per cent slabs instead four earlier. As a result the GST rate of over 350 items will come down. These new rates will be effective from September 22. PTI NKD CS DRR

GST rate reduction drives retailer pass-through as Mother Dairy will transfer tax savings to consumers, lowering product prices. Mother Dairy will pass on 100 per cent of the GST reduction benefits to consumers effective September 22, 2025, reducing retail prices on most products as its portfolio moves into exempt/nil or the lowest 5% slab following a simplification of GST slabs to 5% and 28%, with new rates for over 350 items becoming effective the same date.