New Delhi, September 4 (H.S.): The GST Council has approved major revisions to the Goods and Services Tax (GST) framework, which will make popular beverages such as Coca-Cola, Pepsi, and other non-alcoholic drinks more expensive. Under the new tax regime, the GST rate on carbonated soft drinks has been increased from 28% to 40%. The revised rates will come into effect nationwide on September 22, coinciding with the start of Navratri.

Announcing the decision after the 56th meeting of the GST Council, Finance Minister Nirmala Sitharaman said the rate hike applies not only to regular carbonated drinks but also to fruit-based or fruit-juice–infused carbonated beverages, which will now be taxed at 40% instead of the current 28%.

Sitharaman further explained that the broader restructuring of GST will significantly affect non-alcoholic beverages as a category. These products, currently taxed at 18%, will now fall under the 40% slab. Additionally, all drinks containing added sugar, sweeteners, or artificial flavors will also attract the higher 40% GST rate.

However, in a relief to health-conscious consumers, beverages based on fruit pulp or natural fruit juice—excluding carbonated fruit drinks—will see a tax reduction from 12% to just 5%.

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Hindusthan Samachar / Jun Sarkar