Daijiworld Media Network - New Delhi

New Delhi, Sep 11: Consumers can breathe easy as the prices of popular carbonated drinks like Coke and Pepsi will remain unchanged despite the rollout of GST 2.0, which levies 40% GST with no cess on carbonated beverages—equivalent to the earlier 28% GST plus 12% cess.

Industry executives said there is no effective tax change for carbonated drinks, so “sticker prices won’t increase or decrease.” However, fruit-pulp and fruit-juice-based drinks such as Tropicana, Minute Maid, Maaza and Real will turn cheaper, with GST on these products slashed from 12% to 5%, the government clarified.

The new regime covers carbonated fruit drinks, caffeinated and fizzy energy drinks, and all aerated waters with added sugar or sweeteners, but the government is yet to issue a detailed notification defining fruit juice versus carbonated fruit beverages. This clarification is key as authorities aim to curb the rising consumption of sugary beverages linked to India’s growing diabetes burden.

While welcoming the GST cut for fruit-based drinks, the Indian Beverage Association (IBA) expressed disappointment that carbonated beverages remain classified as ‘sin goods’. The body had sought a sugar-based taxation model with a lower 18% GST for low- or no-sugar variants and has also asked the government to let companies utilize accumulated cess credits before they lapse on Sept 22.

Emails to major bottlers Varun Beverages and Hindustan Coca-Cola Beverages went unanswered at press time.