Fruit-based fizzy drinks to draw 40% rate under GST after Gujarat ruling

Fruit-based fizzy drinks will continue drawing goods and services tax (GST) of 28 per cent along with 12 per cent compensation cess after a ruling by the Gujarat-based authority for advance ruling (AAR).

The authority did not agree with a petitioner's that fruit-based drinks should attract 12 per cent GST. The ruling was on a petition by Mohammed Hasanbhai Kabalai, who appealed the AAR for relevant GST for his proposed ‘Apple Cola Fizzy’ and ‘Malt Cola Fizzy ' drinks.

He said both drinks are apple juice-based and the second one has added flavour of malt.

Under GST tariffs, fruit-pulp or fruit juice-based drinks