Indian Beverage Association Urges GST Rationalisation for Non-Alcoholic Drinks

The Indian Beverage Association calls for a rationalisation of GST on non-alcoholic beverages, advocating for tax based on sugar content. They believe favorable policies could grow the sector to Rs 1.5 lakh crore by 2030. The ICRIER report supports a layered tax model to promote healthier options.

The Indian Beverage Association on Monday urged for a rationalisation of GST structure on non-alcoholic beverages, suggesting taxes should be levied based on sugar content. The association believes favorable tax policies could expand the sector to Rs 1.5 lakh crore by 2030.

Speaking during the release of an ICRIER report on carbonated beverage tax policy in India, Secretary General J P Meena highlighted the significance of non-alcoholic beverages in India's food processing sector. Meena emphasized the need to attract more private investment by reducing GST on bottled water to 5%.

The ICRIER report advocated for a sugar-based, layered tax model on carbonated soft drinks (CSDs), aligning with global policy trends. This approach could promote the production of low-sugar alternatives, boosting sector revenue and job creation.

(With inputs from agencies.)