The Tamil Nadu Milk Dealers’ Employees’ Welfare Association has lodged a formal complaint with the GST Commissioner, accusing Aavin officials of failing to lower dairy product prices following recent GST rate reductions.
Association President S.P. Ponnusamy, along with other office-bearers, submitted the petition to GST Commissioner Lokanathan Reddy at the GST Council office in Nungambakkam, Chennai, on 24 September 2025.
In the complaint, the association pointed out that under the latest GST reforms, UHD milk and paneer are now fully exempted from GST, while the tax on other dairy items like ghee, butter, and cheese has been reduced from 12% to 5%, and ice cream has seen a cut from 18% to 5%.
According to the petitioners, private dairy companies have already begun adjusting their prices to reflect these tax cuts and are passing on the benefit to consumers. However, Aavin, the state-run dairy cooperative, has yet to revise its pricing structure accordingly.
They also alleged that Aavin has neither released a comprehensive price list nor made public any intention to reduce prices, despite repeated appeals from the association. The association has urged the Central Government and the GST Council to take strict action against Aavin for not complying with the revised tax norms.
Following the meeting, Ponnusamy stated that the GST Commissioner had assured them that he would summon Aavin’s management for an inquiry into the issue.
(With Inputs From Hindu Tamil)
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