Fruit-based fizzy drinks are subject to a 28% GST plus a 12% cess

The Gujarat Authority for Advance Ruling (AAR Gujarat) in the matter of M/s. Mohammed Hasabhai Karbalai ruled out that Fruit-based fizzy drinks are subject to a 28% GST plus a 12% cess.

If you want a fizzy drink, you’ll have to pay for it. The categorization of a cold drink determines the goods and services tax (GST) levy, which is included in the final price paid by you, the consumer. While fruit pulp or a fruit juice-based tetra pack may be subject to a GST of only 12%, if the drink is carbonated (fizzy), the user may wind up paying extra due to a higher GST.

The applicant initially intend to supply apple juice based drinks in the name of ‘Apple Cola Fizzy’ and ‘Malt Cola Fizzy ‘. Both the drinks will be apple juice based drinks having same ingredients and manufacturing process, the second one having an added flavour of malt.

The applicant submits that it will commercially market the products as Apple Juice based drinks or Fruit Juice based drinks and labels affixed on the product will expressly indicate the same.

Source form - https://studycafe.in/fruit-based-fizzy-drinks-are-subject-to-a-28-gst-plus-a-12-cess-127877.html