Fruit-based fizzy drinks face 28% GST plus 12% cess – Times of India

MUMBAI: India is caught within the grip of a warmth wave and what higher option to cool off than a chilly drink, which you’ll be able to conveniently gulp straight from a bottle or tetra pack. However dangle on: If you’d like a fizzy drink, be ready to pay the worth. The classification of a chilly drink will decide the products and providers tax (GST) levy, which is a element of the ultimate worth paid by you – the buyer. Whereas fruit pulp or a fruit juice-based tetra pack might entail a GST of simply 12%, if the drink is a carbonated (fizzy) fruit-based drink, the buyer might find yourself paying extra owing to a better GST levy.
Following a GST council assembly on September 13 final 12 months, it was clarified in a press launch, “Carbonated fruit drinks of fruit drink and carbonated drinks with fruit juice will entice GST at 28% and compensation cess of 12%.” This was prescribed particularly within the price schedule.
Lately, in response to a ruling sought by a chilly drink provider, the Gujarat bench of the GST Authority for Advance Ruling (AAR) held that Apple Cola Fizzy and Malt Cola Fizzy are carbonated drinks with fruit juice that can entice GST of 28% and compensation cess of 12%. Earlier, the Appellate Authority for Advance Rulings (Tamil Nadu) had reached an analogous conclusion within the case of fizzy grape juice.

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