GST Cuts Prompt Heritage to Reduce Prices of Dairy Essentials, Ice Cream

Quick Summary

• Heritage Foods, a dairy firm, is revising product prices following the recent rationalisation of Goods and Services Tax (GST) ahead of the festive season.
• Effective September 22, reductions include:

– Long shelf-life UHT Milk: ₹3 per litre
– ghee: ₹50 per litre
– butter: ₹50 per kg
– Cheese: ₹50 per kg
– Paneer: ₹25 per kg
– Ice Cream (950 ml): ₹35 less; Ice cream (700 ml): ₹20 less.

• Fresh milk prices remain unchanged as it is indeed exempted from GST.
• Executive Director Brahmani Nara called the GST revision “welcome and timely” for India’s dairy industry.

Indian Opinion Analysis

Heritage Foods’ decision to pass on GST rate benefits to consumers highlights its effort to align with tax changes while maintaining affordability during India’s festive period. This move could increase consumer goodwill and potentially boost demand for processed dairy products like ghee, cheese, and ice cream at competitive prices. The unchanged price for fresh milk reflects its continued exemption from GST and ensures stability in a basic commodity essential for Indian households.

the decision also underscores broader implications of timely government policy adjustments supporting industries like dairy-critical not just economically but culturally in India. Price reductions might inspire competitors in the sector to follow suit, fostering market competition that ultimately benefits consumers.

Read more: the Hindu