IBA Voices Concern Over Proposed GST Hike on Aerated Drinks

January 16, 2025January 16, 2025 admin 0 Comments aerated beverages, beverage industry, beverage innovation, compensation cess, fruit-based beverages, GST hike, GST on drinks, Indian Beverage Association, policy impact., sin goods tax, tax reform, taxation challenges, zero-sugar drinks

The Indian Beverage Association (IBA) has raised objections to a proposed increase in the GST rate on aerated beverages to 35%, following recommendations by a group of ministers on sin goods. The hike would add to the current 28% GST and 12% compensation cess, taking the effective tax burden to 40%.

C.K. Jaipuria, Vice Chairman of IBA, emphasized the industry’s struggle, particularly for zero-sugar and fruit-based products, which are taxed at the same rate as sugary drinks. The IBA has made several representations to the government, urging reconsideration of the taxation structure, which it claims hinders growth and innovation in the beverage industry.

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