The 56th GST Council meeting, held on 3rd September 2025, brought good news for households across India. In a major step towards making everyday essentials more affordable, the Council reduced GST rates on several food and dairy products. These changes will come into effect from 22nd September 2025.
🥛 Dairy Products at 0% GST
Consumers can now save more on milk-based products that are part of daily diets.
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Ultra-High Temperature (UHT) Milk – GST cut from 5% to Nil
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Paneer (Chena), pre-packaged and labelled – GST cut from 5% to Nil
This means buying packaged paneer and UHT milk will now be tax-free, directly reducing household expenses.
🍞 Everyday Breads Become Cheaper
The Council has exempted some common bakery items from GST:
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Pizza Bread – GST cut from 5% to Nil
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Khakhra, Chapathi, Roti – GST cut from 5% to Nil
These are items consumed daily in Indian households, and the move will particularly benefit the middle-class and urban families.
🧀 Reduced GST on Other Dairy & Food Items
In addition to zero-rated goods, several essential products will now attract 5% GST instead of 12%:
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Condensed Milk
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Butter, Ghee & Dairy Spreads
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Cheese
This makes dairy products more affordable for both direct consumers and businesses like restaurants, sweet shops, and bakeries.
🌰 Cheaper Nuts & Dry Fruits
Nuts and dried fruits, often considered luxury food items, have also seen a rate cut from 12% to 5%:
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Brazil Nuts
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Almonds, Hazelnuts, Chestnuts, Pistachios, Macadamia Nuts, Pine Nuts
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Dates, Figs, Guavas, Mangoes (dried)
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Citrus Fruits (dried)
This will benefit festive shoppers, households, and small businesses engaged in dry fruit trade.
📅 When Will These Changes Apply?
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22nd September 2025 → New GST rates on dairy and essential foods will take effect.
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Businesses must update their billing systems accordingly to avoid compliance issues.
✅ Impact on Consumers & Businesses
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Consumers: Daily groceries and dairy items become cheaper, reducing monthly expenses.
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Food Industry: Restaurants, caterers, and bakeries can cut costs and pass on benefits to customers.
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Farmers & Dairy Sector: Higher demand expected due to reduced consumer prices.
🔎 FAQs on GST Rate Cut
Q1. From when will the new GST rates apply?
👉 From 22nd September 2025 on dairy and food essentials.
Q2. Which dairy products are tax-free now?
👉 UHT Milk and pre-packaged Paneer are at 0% GST.
Q3. Will sweets and bakery items also get cheaper?
👉 Yes, with reduced GST on butter, ghee, and cheese, sweet shops and bakeries will benefit.
Conclusion
The 56th GST Council meeting has made a citizen-friendly move by cutting GST on essential dairy and food products. From milk and paneer to nuts and bread, everyday items will now be lighter on the pocket. This reform is expected to reduce household costs, boost consumption, and support the dairy and food processing industry.