GST on Alcohol, Mineral Water, Juices and Beverages

The GST Council has notified the GST tax for all goods and services supplied in India. GST Rates in India are fixed at five rates, namely - 0%, 5%, 12%, 18% and 28%. With GST implementation set to begin from 1st July 2017, all taxable businesses under GST are now required to obtain GST registration and start filing GST returns. In this article, let us look at the GST rate for all types of beverages, juices, alcohol, coffee, tea and mineral water.

GST Rate for Alcohol

All types of beverages, spirit and vinegar fall under Chapter 22 of the HSN code. Under the Chapter, various types of beverages, including juices and mineral water, are specified. Alcoholic drinks would be taxable at 18% GST rate under ethyl alcohol and other spirits, denatured, of any strength. Further, any beverage for which classification is not provided under HSN is also taxed at 18%. Hence, alcohol and alcoholic products would be taxed at 18% GST rate.

Vinegar and substitutes for vinegar obtained from acetic acid are also taxable at 18% GST.

GSR Rate for Mineral Water

As per GST rates, 18% of GST shall apply to Water, whether natural or artificial mineral water. Also, 18% of GST shall apply to waters aerated and not added other sweetening matter nor flavoured products. Hence, the GST Council fixed 18% of GST for packaged mineral water. Also, water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container] is not taxable under GST. Hence, unpackaged water and unprocessed water is tax-free under GST.

Also read: GST Rate for Toys and Sporting Goods

GST Rate for Juices

Non-alcoholic toddy and neera get exempt from GST. On the other hand, 12% of GST applies to the following types of drinks:

Soya milk drinks
Fruit pulp or fruit juice based drinks
Tender coconut water put up in a unit container and bearing a registered brand name
Beverages containing milk

For the following types of drinks and beverages, 28% of GST shall apply:

Other non-alcoholic beverages
Aerated containing waters, added other sweetening matter or sugar or flavoured

GST Rate for Coffee and Tea

Coffee, tea, mate and spices fall under chapter 9 of the HSN code.

Seeds of coffee, tea and spices are not taxable under GST. Further, coffee beans, not roasted and unprocessed green leaves of tea are not taxable under GST.

On the other hand, coffee whether roasted, unroasted or decaffeinated, coffee husks and skins, coffee substitutes containing coffee in any proportion, other than coffee beans not roasted shall attract 5% of GST. 5% of GST shall also apply to Tea, whether flavoured or unflavored, other than unprocessed green leaves of tea.

Mate a bitter infusion of the leaves of a South American shrub is taxable at 5% GST.

1 for all goods and services in India.

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Frequently Asked Questions

Common questions about GST Rates on Alcohol, Mineral Water & Beverages in India.

Yes, packaged mineral water, whether natural or artificial, is taxable under GST at the rate of 18%. The GST Council has fixed 18% GST for packaged mineral water.

The GST rate applicable to fruit juices and beverages depends on their specific category. Non-alcoholic beverages like fruit pulp or fruit juice-based drinks attract 12% GST. However, aerated beverages containing added sweeteners or flavors are taxed at 28% GST.

Yes, milk-based beverages like soya milk drinks are taxable under GST at the rate of 12%. The article mentions that beverages containing milk attract a 12% GST rate.

Coffee, whether roasted, unroasted, or decaffeinated, and tea, whether flavored or unflavored, are taxable at 5% GST rate. However, unprocessed coffee beans and unprocessed green leaves of tea are exempt from GST.

Yes, vinegar and substitutes for vinegar obtained from acetic acid are taxable under GST at the rate of 18%.

Yes, unpackaged water and unprocessed water are not taxable under GST, as mentioned in the article. Only packaged mineral water and aerated waters with added sweeteners or flavors are taxable under GST.

Tender coconut water put up in a unit container and bearing a registered brand name is taxable at 12% GST rate.

No, seeds of coffee, tea, and spices are not taxable under GST, as per the article's information.

Yes, mate, a bitter infusion of the leaves of a South American shrub, is taxable at 5% GST rate.