Beverage industry urges govt to reduce GST on soft drinks, packaged water

The beverage industry has urged the government to remove aerated drinks fromthe sin tax category and reduce rate on juice-based drinks under the GST regime.

Reduction of taxes on juices would give a boost to local horticulture sector and improve the lives of farmers, from which the industry sources fruits, Indian Beverage Association (IBA) said in a statement.

IBA in a letter to Finance Minister Nirmala Sitharaman, who also heads the GST Council, has suggested placing the packaged drinking water in a lower slab of 12 per cent from the existing 18 per cent.

The aerated beverages are currently placed under the highest GST slab of 28 per cent with a compensation cess of 12 per cent.

"This high GST levy of 40 per cent on aerated beverages is against the stated policy of the government to maintain parity between pre-GST and GST regimes," IBA said, adding that aerated beverage is the only product in the entire food category subjected to compensation cess.

It has also urged to revise "th