Popular soft drink brands like Coca-Cola and Pepsi, along with several other non-alcoholic beverages, are set to become more expensive after the GST Council approved an increase in the tax rate on carbonated beverages to 40 percent.
As part of the latest GST reforms, the council decided to raise the rate on carbonated fruit drinks and carbonated beverages containing fruit juice to 40 percent from the earlier 28 percent.
Caffeinated beverages have also been brought under the higher bracket, with the tax rate going up to 40 percent from 28 percent. In addition, other non-alcoholic beverages will see a jump in prices as the GST rate on these products has been increased to 40 percent from 18 percent.
At the same time, some categories of drinks will become more affordable. The GST rate on fruit pulp or fruit juice-based drinks, excluding carbonated varieties, has been reduced to 5 percent from 12 percent. Similarly, plant-based milk beverages meant for direct consumption will now attract only 5 percent GST instead of the earlier 18 percent. The tax on soya milk drinks has also been lowered to 5 percent from 12 percent