- The rate structure of goods under GST is based on the Customs Tariff Act, which is divided into 21 sections and 98 chapters.
- Chapter 22 covers beverages, including lemonade and fruit juice-based drinks.
- Non-carbonated lemonade falls under a higher GST rate compared to lemon juice-based drinks.
- The HSN code of the product must be determined correctly to avoid discrepancies in GST rates.
- While the Customs Tariff and Explanatory Notes do not offer clarity on the difference between the two types of beverages, FSSAI regulations state that a fruit beverage must have a minimum of 5% fruit juice content to be classified as a fruit juice-based drink.
- The same principle has been upheld by the Larger Bench of Allahabad Tribunal.
- The correct classification of products is crucial in determining the correct GST rates, and the product’s name, nature, features, and description on labels should be considered.
Source CA Arushi Jain
Latest Posts in "India"
- GST Success Hinges on Single Tax Rate, Report Recommends Two Slabs and Capped Peak Rate
- Uncertainty in GST Treatment for Ride-Hailing Platforms: Legal Challenges and Implications
- 56th GST Council meeting is scheduled for September 3rd and 4th, 2025
- Eight States Demand GST Rate Cuts Be Tied to Revenue Guarantee and Consumer Benefits
- CII Urges Corporates to Transfer GST Rate Cut Benefits to Consumers Before Festive Season