GST on cold drinks depends on the type. Aerated, carbonated and sweetened drinks — Coca-Cola, Pepsi, Sprite, Thums Up, Red Bull, Monster — now attract a flat 40% under the GST 2.0 reform effective 22 September 2025 (the earlier 28% + 12% cess was merged into one 40% rate). Fruit juices, non-carbonated fruit drinks, coconut water and packaged drinking water are 5%. Plain and UHT milk are Nil (exempt).
GST Rates on Cold Drinks & Beverages
Every common beverage, its HSN code and its GST rate after the GST 2.0 rationalisation. See our HSN / SAC code guide for classification.
| Beverage / Category | Examples | HSN | GST Rate |
|---|---|---|---|
| Aerated / carbonated soft drink | Coca-Cola, Pepsi, Sprite, Thums Up, Limca, 7Up | 2202 | 40% |
| Carbonated fruit / flavoured drink | Appy Fizz, Mirinda, aerated fruit drinks | 2202 | 40% |
| Energy drink (carbonated) | Red Bull, Monster, Sting, Rockstar | 2202 | 40% |
| Fruit juice (100% / nectar) | Tropicana, Real, Dabur | 2009 | 5% |
| Non-carbonated fruit drink | Maaza, Frooti, Slice (still) | 2202 | 5% |
| Coconut water (packaged) | Tender coconut water in carton/bottle | 2009 | 5% |
| Vegetable juice / smoothie | Tomato, carrot juice (non-carbonated) | 2009 | 5% |
| Flavoured / plant-based milk drink | Amul Kool, soy milk, almond milk | 2202 | 5% |
| Lassi, chaas, buttermilk | Branded packaged lassi / chhach | 2202 | 5% |
| Packaged drinking water | Bisleri, Kinley (all pack sizes) | 2201 | 5% |
| Plain fresh / UHT milk | Amul, Mother Dairy (unflavoured) | 0401 | Nil |
| Alcoholic beverages | Beer, whisky, wine, rum | — | Outside GST |
Rates reflect the GST 2.0 two-slab (5%/18%) structure plus the 40% demerit rate effective 22 September 2025. Confirm on the official GST portal before invoicing.
Carbonated 40% vs Non-Carbonated 5%
One factor drives the rate for most drinks: is the beverage aerated (carbonated) and sweetened / flavoured? If yes, it is a demerit good taxed at 40%. Non-carbonated juices, fruit drinks, coconut water, packaged water and milk drinks now sit at 5%.
Non-carbonated drinks
- Fruit juices & nectars (Tropicana, Real)
- Non-fizzy fruit drinks (Maaza, Frooti)
- Coconut water & vegetable juices
- Packaged drinking water (all sizes)
- Flavoured / plant-based milk drinks
Aerated / sweetened drinks
- Cola & soft drinks (Coke, Pepsi, Sprite)
- Carbonated fruit drinks (Appy Fizz)
- Energy drinks (Red Bull, Monster, Sting)
- Any sweetened / flavoured carbonated drink
- Highest beverage slab — a demerit good
A fruit-based drink is 5% only while it is still (non-carbonated). Add CO2 and the same fruit drink jumps to the 40% aerated slab. Correct HSN classification (2202 aerated vs 2009/2202 non-aerated) is what decides the rate — get it wrong and you under-collect 35 percentage points of tax.
Not sure which slab your beverage falls in?
Get My GST Rate →Why Aerated Drinks Are Now 40%
Before 22 September 2025, aerated drinks carried 28% GST + 12% Compensation Cess — an effective 40%. The GST 2.0 reform removed the compensation cess and folded the burden into a single 40% demerit rate, alongside tobacco, pan masala and other sin/luxury goods. The headline number changed, but the overall tax on a fizzy drink stayed at roughly 40%.
How GST Adds Up — ₹100 Base Price
40% Aerated soft drink
5% Fruit juice / water
The same ₹100 of drink carries ₹40 of GST if it is fizzy and sweetened, but only ₹5 if it is a plain juice or packaged water — a stark reminder of how much classification matters. Try our GST calculator for your own figures.
Manufacturing or distributing beverages? Get your HSN classification and rate confirmed.
Get Beverage GST Advice →ITC, Cess & Compliance for Beverage Businesses
Manufacturers, distributors and retailers of cold drinks registered under GST can claim Input Tax Credit on inputs — sugar, concentrate, CO2, bottles, machinery and services — subject to normal rules.
- The 40% on aerated drinks is now a single GST rate — with the compensation cess removed, there is no separate cess ledger to track from 22 Sep 2025.
- Beverage traders on the 40% or 5% slabs follow standard forward-charge invoicing and full ITC on eligible inputs.
- Selling on e-commerce (Amazon, BigBasket, quick-commerce) triggers TCS and mandatory registration regardless of turnover.
- Watch the aerated vs non-aerated line — mis-classifying a fizzy drink as a 5% juice is a high-value demand risk on audit.
You likely need GST registration if
- You manufacture or bottle beverages
- You distribute / wholesale cold drinks
- You sell drinks via any e-commerce platform
- Aggregate turnover crosses ₹40L goods / ₹20L services
Get classification checked if
- You sell carbonated fruit or flavoured drinks
- You bottle water or coconut water
- You launch a new energy or health drink
- You are unsure of the correct HSN code
The GST 2.0 reform widened the gap between "sin" beverages (40%) and everyday drinks (5% / Nil). For a beverage brand, the single biggest GST decision is HSN classification — whether a product is aerated and sweetened. That one call moves the tax on every unit by up to 35 percentage points.
Frequently Asked Questions
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