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Fruit-based fizzy drinks to draw 40% rate under GST after Gujarat ruling

Fruit-based fizzy drinks to draw 40% rate under GST after Gujarat ruling

Fruit-based fizzy drinks will continue drawing goods and services tax (GST) of 28 per cent along with 12 per cent compensation cess after a ruling by the Gujarat-based authority for advance ruling (AAR).

The authority did not agree with a petitioner's that fruit-based drinks should attract 12 per cent GST. The ruling was on a petition by Mohammed Hasanbhai Kabalai, who appealed the AAR for relevant GST for his proposed ‘Apple Cola Fizzy’ and ‘Malt Cola Fizzy ' drinks.


He said both drinks are apple juice-based and the second one has added flavour of malt.

Under GST tariffs, fruit-pulp or fruit juice-based drinks draw a 12 per cent rate. On the other hand, aerated waters and carbonated drinks are charged 28 per cent GST along with 12 per cent cess.

The petitioner based his arguments on the Food Safety and Standards Authority of India (FSSAI) regulations. He argued that the drinks are not carbonated.

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