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Fruit-based fizzy drinks face 28% GST plus 12% cess

Fruit-based fizzy drinks face 28% GST plus 12% cess

India is caught in the grip of a heat wave and what better way to cool off than a cold drink, which you can conveniently gulp directly from a bottle or tetra pack. But hang on: If you want a fizzy drink, be prepared to pay the price. The classification of a cold drink will determine the goods and services tax (GST) levy, which is a component of the final price paid by you – the consumer. While fruit pulp or a fruit juice-based tetra pack could entail a GST of just 12%, if the drink is a carbonated (fizzy) fruit-based drink, the consumer could end up paying more owing to a higher GST levy.
Following a GST council meeting on September 13 last year, it was clarified in a press release, “Carbonated fruit beverages of fruit drink and carbonated beverages with fruit juice will attract GST at 28% and compensation cess of 12%.” This was prescribed specifically in the rate schedule.

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