HSN Classification and GST Rate for Non-Alcoholic Beverages, Syrups and Tea Extracts: AAR

The company, Sage Organics Private Limited (applicant), has filed an application dated December 03, 2025, seeking the West Bengal Authority for Advance Ruling (AAR) Goods and Services Tax (GST) under subsection (1) of section 97 of the GST Act.

The applicant is registered under the GST Act, possesses GSTIN 19ABDCS2122E1ZP and is located at 4th Floor, 3B, Sir Rnm House, Lal Bazar Street, Kolkata, West Bengal, 700001. The applicant is involved in the manufacture and supply of healthy, low-calorie and sugar-free non-alcoholic beverage preparations intended for human consumption.

Question Asked Before West Bengal AAR:

The applicant has asked the following question seeking the West Bengal Authority for Advance Ruling (AAR):

“Question: 1 What is the appropriate classification under GST 2.0 for the following products?

(a) Non-alcoholic beverage/Iced Tea preparation (HSN 22029020)

(b) Syrups and beverage concentrate (HSN 21069019)

(c) Extracts, essences and concentrates of tea (HSN 21012010)

Please clarify if the above-mentioned HSN Code is correct. If found incorrect, kindly provide the correct HSN Code.

Question 2: What is the appropriate classification under GST 2.0 for the following products?

(a) Non-alcoholic beverage/Iced Tea preparation

(b) Syrups and beverage concentrates

(c) Extracts, essences and concentrates of tea

Question 3: Whether these products qualify under Schedule II or III of the new GST rate notifications for food/beverage items?

Question 4: What is the applicable GST rate of the above goods under GST 2.0?”

Answers Given by West Bengal AAR:

The West Bengal Authority for Advance Ruling (AAR) has given the following answers to the questions asked by the applicant:

Answer 1: (a) The appropriate classification under GST 2.0 for non-alcoholic beverages is 22029990, and iced tea preparation will be covered by subheading 210120.

(b) The same subheading 210120 is applicable for extracts, essences and concentrates of tea.

(c) Syrups and beverage concentrates are covered under the Tariff item no. 21069019.

Answer 2: This question has the same answer like the first question.

Answer 3: Non-alcoholic beverages will be taxed under Schedule III (Serial No. 2) of Notification No. 1/2017 – Central Tax (Rate) dated June 28, 2017, as amended by Notification No. 09/2025 – Central Tax (Rate) dated September 19, 2025, for GST rate purposes.

Iced tea, as well as tea extracts, essences, and concentrates, are included in Schedule I (Serial No. 136) of the notification mentioned above. Similarly, syrups and beverage concentrates are covered under Schedule I (Serial No. 145) of the same notification.

Answer 4: GST rate at 40% (20% CGST + 20% SGST) will apply to the non-alcoholic beverages as specified by the applicant. Iced Tea preparation & Extracts, essences and concentrates of tea attract a 5% GST rate (2.5% CGST + 2.5% SGST). Syrups and beverage concentrates are taxed at a 5% GST rate (2.5% CGST + 2.5% SGST).