The Group of Ministers (GoM) on GST rate rationalization has recommended increasing the GST rate on aerated beverages to 35%, from the current rate of 28%. Currently, these beverages also attract a 12% compensation cess, making them one of the most heavily taxed items in the GST regime.
The proposal aims to align taxation with the perceived luxury or non-essential nature of aerated drinks, regardless of their sugar or fruit content. This recommendation will be reviewed at the GST Council meeting on December 21 in Jaisalmer.
If approved, the move is likely to increase the cost of carbonated beverages, impacting both manufacturers and consumers. The proposal is part of a broader initiative by the GoM to restructure GST rates to align them with product value, ensuring that high-value or non-essential goods attract higher tax rates while reducing levies on essential items.
