Gauhati High Court Ruled Carbonated Drinks and Fruit Pulp to attract 12% GST

The Gauhati High Court has ruled that carbonated juices are eligible for 12% GST rather than 28%, which will have a significant impact on middle-class spending throughout the summer season, according to a report.

According to the High Court’s order, carbonated juices are more than just “carbonated water.” Ciiting to a 2017 announcement, the bench of Justice Soumitra Saikia ruled that ready-to-serve and carbonated fruit drinks are subject to 12% GST.

The High Court’s judgement effectively ended the GST demand against X’SS Beverage. Though GST officials stated that because the beverages contain carbonated water, they should be taxed at a higher rate. However, X’SS Beverage contended that because fruit juice was the primary ingredient in their drinks, they should be taxed at a reduced rate.

The High Court, in granting the plea, determined that fruit juice-based drinks should be categorised as aerated branded soft drinks. As a result, there was no need for the subordinate authorities to include these products in the Notification under Section 6(1)(d).

The Gauhati High Court, relying on the Rules for Interpretation of the Customs Tariff Act, 1975, underlined that where products do not fit neatly into one category, they should be classed under the most relevant category for their essential essence. While delivering the GST order, the bench considered the matter of Parle Agro’s ‘Appy Fizz.’