Mumbai: Summer is here, and so is some refreshing news for consumers! In a significant ruling, the gauhati high court has been held that fruit pulp and juice-based carbonated drinks are not just just just just just “water or carbonated water alone.”
That means they attract a lower goods and services tax (GST) – Falling under the lower 12% GST Slab INTEAD of the steep 28% demanded by tax authorities. The HC Order has effectively fizzed out the gst demand (plus penalty and interest) imposed on X'Sss Beverage – a manufacturer and seller of a range of Carbonated Juice Drinks,
While the GST Authorities Contended That Since the Beverages Contained Carbonated Water, they should be taxed at the higher rate which is applicable to soft drinks. In contrast, x's beverage maintained that the predominant ingredient in its products was fruit juice, which gave the drinks their essential character, Making them Eligible for A Oligible.
The gauhati high court relieved on the rules forPretation of the customs tarif act, 1975, emphasising that in cases where products do not fit prepry into a single into a single into Under the heading most approves to their essential nature. The court also referred to scientific principles and judicial precedents
This being a high court judgment will set legal precedence. “There has been few adverse rulings on the classification of carbonated fruit drinks … in this case, the hc has written at all keys such as the ingredients, their Proporting and Role In Manufacts, Common Parlance of the product, how the products are marketed, their label etc. to decide the classification and conseaquently a lower gst Rate, “Said Harpreet Singh, Partner, Indirect Tax, Deloitte-India.
(Tagstotranslate) Business News (T) X'SS Beverage (T) Soft Drinks Tax (T) Lower GS
Leave a Reply