GST on cold drinks and juices: HSN codes and rates
Cold drinks and juices fall under HSN chapter 22 (2201 waters, 2202 other non-alcoholic beverages) or 2009 (fruit juices). Since the GST changes effective 22 September 2025, carbonated and aerated sugary drinks attract 40% GST, while non-carbonated fruit-pulp or fruit-juice based drinks are generally at 5%. Rates for some 2202 sub-headings were updated again from 1 May 2026, so always confirm your exact sub-heading with your accountant.
By Munafa Book team · · 2 min read
This guide explains how beverage GST works for distributors. It is not tax advice. GST rates change through notifications - check the current CBIC notification for your product's 8-digit HSN, or ask your accountant.
The HSN headings that matter
| HSN heading | What it covers (simplified) |
|---|---|
| 2201 | Waters, including natural or mineral water, without added sugar or flavour |
| 2202 | Waters with added sugar or flavour, and other non-alcoholic beverages (soft drinks, fruit drinks, flavoured milk-based drinks in some cases) |
| 2009 | Fruit and vegetable juices, unfermented, without added spirit |
Within 2202, the 8-digit sub-heading matters. For example, carbonated beverages and fruit-pulp or fruit-juice based drinks are different sub-headings with different rates.
What changed in September 2025
With the GST rate rationalisation effective 22 September 2025, most goods moved into 5% and 18% slabs, with a 40% rate for a short list including carbonated and caffeinated beverages with added sugar. Earlier, aerated drinks carried 28% GST plus a 12% compensation cess.
- Carbonated / aerated drinks with added sugar or flavour: 40% (in place of 28% + cess).
- Non-carbonated fruit-pulp or fruit-juice based drinks: generally 5% (previously 12%).
- Carbonated drinks with fruit juice: treated with carbonated beverages, not fruit drinks.
A notification dated 30 April 2026, effective 1 May 2026, updated the classification of some 2202 sub-headings. Before you set rates for the year, compare your products against the latest notification.
Billing tips for beverage distributors
- Set the HSN and GST rate on each product, not on the bill, so every bill is consistent.
- If you quote prices including GST to shops, bill from those prices and let the bill split taxable value and GST.
- Keep carbonated and fruit-based variants of the same brand as separate products - they can have different rates.
- When a rate changes, update the product before the first bill of the effective date, and keep old bills unchanged.
Our free GST calculator shows the tax inside a GST-inclusive price at any rate, including 40%. Munafa Book stores HSN and rate per product and gives your accountant an HSN-wise GST summary - see GST billing and the page for beverage distributors.