New
Published on:
February 20, 2023
By
Paramita

Levy of GST on Non-Alcoholic Beverages

Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. The GST Council has classified goods and services under different tax slabs, and Non-Alcoholic Beverages are one such category. In this article, we will discuss the levy of GST on Non-Alcoholic Beverages in detail.

What are Non-Alcoholic Beverages?

Non-Alcoholic Beverages are drinks that do not contain any alcohol. These beverages are consumed for their taste, thirst quenching, and nutritional benefits. Some of the examples of Non-Alcoholic Beverages are:

  • Soft Drinks
  • Energy Drinks
  • Fruit Juices
  • Tea and Coffee
  • Flavored and Mineral Water

Levy of GST on Non-Alcoholic Beverages

The GST on Non-Alcoholic Beverages is levied at different rates based on various factors such as the type of drink, packaging, and its ingredients. The GST rates for Non-Alcoholic Beverages are classified into four categories:

  • Exempted
  • Nil
  • 5%
  • 12%

Let's discuss each category in detail.

Exempted

Non-Alcoholic Beverages that are exempted from GST are:

  • Unsweetened milk
  • Buttermilk
  • Curds
  • Lassi
  • Chhaas
  • Unflavored and unsweetened paneer
  • Fruits and vegetables juices without added sugar or flavoring

Nil

Non-Alcoholic Beverages that attract a nil GST rate are:

  • Unpackaged tender coconut water
  • Unpackaged drinking water
  • Unpackaged neera
  • Unpackaged toddy

5%

Non-Alcoholic Beverages that attract a 5% GST rate are:

  • Coffee beans, tea leaves and chicory
  • Packaged tender coconut water
  • Processed and packaged fruits and vegetables juices
  • Flavored milk

12%

Non-Alcoholic Beverages that attract a 12% GST rate are:

  • Soft drinks
  • Energy drinks
  • Packaged drinking water
  • Flavored and mineral water
  • Other beverages containing added sugar or sweeteners, including fruit-based drinks

Conclusion

The levying of GST on Non-Alcoholic Beverages is an essential component of the taxation system in India. The GST Council ensures that the tax rates are reasonable and in line with the objective of promoting non-alcoholic beverages' consumption. Small and Medium Business owners and Startup founders dealing with Non-Alcoholic Beverages must be aware of the GST rates to comply with the taxation rules and regulations.

Suggestions



Understanding GST on Import Clearances other than Port of Importation in India
GST on Bus Body Building and Retreading of Tyres in India
GST on Import Clearances other than Port of Importation

Updated on:
March 16, 2024