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Chapter 22 - Beverages, spirits and vinegar

Notes
  1. This Chapter does not cover:
    1. products falling thereunder (other than those of heading 2209) prepared for culinary purposes and thereby rendered unsuitable for consumption as beverages (generally heading 2103);
    2. sea water (heading 2501);
    3. distilled or conductivity water or water of similar purity (heading 2853);
    4. acetic acid of concentration exceeding 10 % by weight of acetic acid (heading 2915);
    5. medicaments of heading 3003 or 3004; or
    6. perfumery or toilet preparations (Chapter 33).
  2. For the purposes of this Chapter and of Chapters 20 and 21, the "alcoholic strength by volume" shall be determined at a temperature of 20° C.
  3. For the purposes of heading 2202, the term "non-alcoholic beverages" means beverages of an alcoholic strength by volume not exceeding 0.5 % vol. Alcoholic beverages are classified in headings 2203 to 2206 or heading 2208 as appropriate.
GST Rates of Goods
Chapter HeadingDescriptionRate of GSTScheduleSr.No
2201Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured5%I24
2207Ethyl alcohol and other spirits, denatured, of any strength5%I25<sup>5</sup>
2209Vinegar and substitutes for vinegar obtained from acetic acid5%I26
2201Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured [other than Drinking water packed in 20 litres bottles]5%I24<sup>1</sup>
2201Drinking water packed in 20 litres bottles12II46B<sup>1</sup>
2207Ethyl alcohol supplied to Oil Marketing Companies for blending with motor spirit (petrol)5%I102A<sup>6</sup>
2207 Ethyl alcohol and other spirits, denatured, of any strength [other than ethyl alcohol supplied to Oil Marketing Companies for blending with motor spirit (petrol)]5%I102A<sup>6</sup>
2202 10All goods [including aerated waters], containing added sugar or other sweetening matter or flavoured40%V12
2201 99 10Ice and snow5%I102
2202 91 00Other non-alcoholic beverages [other than tender coconut water]5%I24A<sup>2</sup>
2202 99 20Fruit pulp or fruit juice based drinks12%II48<sup>1</sup>
2202 99 30Beverages containing milk12%II50<sup>5</sup>
2202 99 90Tender coconut water put up in unit container and bearing a registered brand name5%I49<sup>2</sup>
2202 91 00Other non-alcoholic beverages [other than tender coconut water and caffeinated beverages]5%I24A<sup>3</sup>
2202 99 10Soya milk drinks12%II47<sup>4</sup>
2202 99 90Tender coconut water [put up in unit container and,— (a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any such actionable claim or enforceable right in respect of such brand name has been voluntarily foregone, subject to the conditions as specified in the ANNEXURE]]5%I49<sup>3</sup>
2202 99 90Other non-alcoholic beverages40%V11<sup>4</sup>
2201Water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container]0%-99
2201Non-alcoholic Toddy, Neera including date and palm neera0%-100
2202 99 90Tender coconut water put up in unit container and bearing a registered brand name0%-101
2202 99 90Tender coconut water [put up in unit container and,— (a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any such actionable claim or enforceable right in respect of such brand name has been voluntarily foregone, subject to the conditions as specified in the ANNEXURE]]0%-101<sup>7</sup>
Other Exemptions
DescriptionNotification
Exemption from Registration - Small Taxpayers having turnover below threshold limitNotification No. 10/2019-C.T., dated 7-3-2019
Composition Levy Scheme for Small Taxpayers having Turnover Up to Rs. 1.5 Crore — Old SchemeNotification No. 8/2017-C.T., dated 27-6-2017
Composition Levy Scheme for Small Taxpayers having Turnover up to Rs. 1.5 Crore — New SchemeNotification No. 14/2019-C.T., dated 7-3-2019
Scheme to Pay GST 0 6% - For Taxpayers having turnover less than Rs. 50 Lakhs and Not Eligible for Composition Scheme.Notification No. 2/2019-C.T. (Rate), dated 7-3-2019
Exemption to Specified Goods supplied to Specified Recipients for Petroleum Exploration etc.Notification No. 3/2017-Central Tax (Rate), dated 28-6-2017]
Exemption to Goods Supplied to CSD by way of Refund Notification No. 6/2017-Central Tax (Rate), New Delhi, dated 28-6-2017.
Exemption to goods supplied by CSDNotification No. 7/2017-Central Tax (Rate), New Delhi, dated 28-6-2017
United Nation, International Organisation and Foreign Diplomatic Mission Notified as Entitled for refund of GST Paid on supplies received.Notification No. 16/2017-Central Tax (Rate), dated 28-6-2017
Reduced GST on Supply of Goods to ExporterNotification No. 40/2017-CT. (Rate), dated 23-10-2017
Concessional GST on Supply of Scientific and technical equipment to research institutionsNotification No. 45/2017-C.T. (Rate), dated 14-11-2017
Departmental Clarifications / Case Law
Applicability of GST on supply of safe drinking water for public purpose:
Representations have been received seeking clarification regarding applicability of GST on supply of safe drinking water for public purpose. Attention is drawn to the entry at S. No. 99 of notification No. 2/2017-Central Tax (Rate), dated 28-6-2017, by virtue of which water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, demineralized and water sold in sealed container) falling under HS code 2201 attracts NIL rate of GST. Accordingly, supply of water, other than those excluded from S. No. 99 of notification No. 2/2017-Central Tax (Rate), dated 28-6-2017, would attract GST at `NIL` rate. Therefore, it is clarified that supply of drinking water for public purposes, if it is not supplied in a sealed container, is exempt from GST. Circular No. 52/26/2018 GST, dated 9-8-2018
Sharbat Rooh Afza:
The fact that three table spoonful's of the said sharbat have to be added to a glass of water to make it drinkable does not, in our view, make the said sharbat not a beverage but a preparation for a beverage. Were that so, many beverages which are classified as such, as for example, tea, coffee, orange squash and lemon squash would not be beverages. It seems to us that the phrase 'preparations for lemonades or other beverages' in clause (j) of Note 5 of Chapter 21 was intended to refer to the industrial concentrates from which aerated waters and similar drinks are mass produced and not to preparations for domestic use like the said sharbat. It was necessary for the respondents to have shown, having regard to the terminology of Heading 21.07, that the said sharbat was `not elsewhere specified or intended`. That, in our view, was not done. In fact as we see it, it falls within the terms of Heading 2201.90, Hamdard (wakf) laboratory v Collector, 1999 (113) ELT 20 (S.C.)
Appy Fizz
As per the Central Excise Tariff, the waters; including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured are classifiable under sub-heading No. 2202.10. The drinks based on fruit juice are specifically classifiable under Heading No. 22029020 of the Tariff. The product in question contains 23% of apple juice, hence Classifiable under 2202 90 20. Commissioner v Park Agro Pvt. Ltd., 2008 (226) ELT 194 (Tri. - Del.). This judgment was upheld by Hon'ble Supreme Court.
Mango Pulp based drink like Maaza and like products
Mango Pulp based drink like Maaza and like products are classifiable under CTH 2202.90- Bombay-1 Collectorate Trade Notice No. 45/87, dated 6-7-1987- 1987 (30) ELT (T24).
Red Bull Energy Drink
Red Bull Energy Drink contains caffeine contents, glucose and vitamins, mineral water and aerated waters, etc. hence, appropriately classifiable under CTH 2202 90 90 and not under CTH 2202 10 10- Commissioner v Narang Hospitality Services Pvt. Ltd.- 2014 (307) ELT 801 (Tri.-Mumbai).
Soft drinks i.e. aerated drinks-
All goods [including aerated waters], containing added sugar or other sweetening matter or flavoured falling under 2202 10 attract 28% GST and 12% Compensation Cess. C.B.I. & C. Circular F. No. 332/2/2017-TRU, dated 7-12-2017