Carbonated juices to attract 12% GST, not 28%: High court

Mumbai, Mar 12, 2025

The Gauhati High Court has ruled that fruit pulp and juice-based carbonated drinks fall under the lower 12% GST slab instead of the higher 28%. This ruling benefits manufacturers like X’SS Beverage by classifying these drinks based on their essential fruit juice content rather than their carbonation.

Summer is here, and so is some refreshing news for consumers! In a significant ruling, the Gauhati high court has held that fruit pulp and juice-based carbonated drinks are not just “water or carbonated water alone.”

That means they attract a lower Goods and Services Tax (GST)— falling under the lower 12% GST slab instead of the steep 28% demanded by tax authorities. The HC order has effectively fizzed out the GST demand (plus penalty and interest) imposed on X’SS Beverage — a manufacturer and seller of a range of carbonated juice drinks.

While the GST authorities contended that since the beverages contained carbonated water, they should be taxed at the higher rate which is applicable to soft drinks. In contrast, X’SS Beverage maintained that the predominant ingredient in its products was fruit juice, which gave the drinks their essential character, making them eligible for a lower tax rate.

[The Times of India]