Bengaluru: There’s some good news for dairy lovers and those with a sweet tooth. From Monday, September 22, several popular dairy and bakery products — including ghee, butter, cheese, ice cream, cakes, muffins, cookies, and chocolates — will become cheaper following a revision in the Goods and Services Tax (GST) rates by the Union government.
The Karnataka Milk Federation (KMF), which markets products under the well-known Nandini brand, confirmed the development after a key meeting on Friday.
GST Cuts to Benefit Consumers
KMF Managing Director B. Shivaswamy explained that GST on ghee, cheese, and savouries has been reduced from 12% to 5%. Similarly, items like ice cream and bakery products, which were previously taxed at 18%, will now fall under the 5% slab.
“This move will directly benefit consumers, making everyday dairy treats more affordable,” Shivaswamy said.
Milk and Curd Prices Unchanged
While many items are set to become cheaper, there will be no change in milk and curd prices. Milk will continue to remain GST-free, and curd will still attract a 5% GST.
Shivaswamy clarified that this revision will not impact farmers, as procurement charges remain unchanged. “Milk prices were already increased by ₹4 per litre earlier. There is no plan to revise them again anytime soon,” he added.
Packaged Milk Gets Cheaper, Bounce Brand Costlier
Consumers can also expect a small bonus: packaged UHT milk brands like Goodlife will now be GST-free, down from the earlier 5%. This means packaged milk will soon be available at a reduced price.
On the flip side, products under Nandini’s new ‘Bounce’ brand have been reclassified as luxury items. Their GST has been increased from 28% to 40%, making them costlier.
Official Clarification on Curd
Amid earlier speculation about changes in curd pricing, a senior KMF official confirmed that after consultations with the Union ministry, curd prices will remain unchanged.
What This Means for Consumers
From September 22, the price cuts are expected to bring welcome relief to households across Karnataka and beyond, especially at a time when food inflation has been biting into family budgets. Cheaper dairy and bakery items could also boost demand in the upcoming festive season, offering consumers a reason to cheer.
