--- title: "Cold Drinks New GST Rate 2026: 40% Rate on Aerated Drinks" description: "New GST rate on cold drinks in 2026 is 40% on aerated drinks and carbonated beverages. Get GST-ready with Busy and apply the correct rate on every invoice." canonical: "https://busy.in/gst-rates/cold-drinks/" author: "Jagdish Prasad" published: "2025-05-16T05:18:30.000Z" category: "GST Rates" --- - The **gst on cold drinks** such as aerated and specified soft drinks is **40%** under the revised GST structure effective from 22 September 2025. - Before the revision, applicable aerated beverages generally attracted **28% GST plus 12% Compensation Cess**. - Non-carbonated fruit pulp or fruit juice-based drinks generally attract **5% GST**, reduced from the earlier **12%** rate. - Cold drinks supplied as part of restaurant service are taxed according to the applicable restaurant-service GST treatment, generally **5% without ITC** outside specified premises. - Businesses can claim eligible Input Tax Credit (ITC) on taxable beverage supplies, subject to applicable GST conditions. # New GST Rate on Cold Drinks and Aerated Beverages Cold drinks are a favorite refreshment for millions across India, especially during summer. But behind every bottle of soda or fruit-based cooler is a high tax tag. In this guide, we break down the cold drink hsn code and gst rate, its impact on pricing, and how it affects both consumers and sellers. ## GST on Cold Drinks & Aerated Beverages in India The **Government of India is updating GST rates effective after 22 September 2025**. Under the revised GST structure, **cold drinks and aerated beverages fall under a special 40% GST slab**, replacing the earlier system of **28% GST plus 12% compensation cess**. Most **fizzy and sweetened beverages are considered non-essential or “sin goods”**, which is why they attract a higher tax rate. In contrast, **natural fruit juices without carbonation are taxed at a lower rate of 5%**. ## New GST Rate on Cold Drinks and Beverages The **cold drink gst rate** is **40%** for applicable aerated, sweetened, and carbonated beverages under the revised GST structure. | Type of Beverage | HSN Code | GST Rate (After 22 Sept 2025) | Old GST + Cess (Before 22 Sept 2025) | Total Old Tax | | --- | --- | --- | --- | --- | | Aerated drinks (colas, sodas) | 2202 | 40% (special slab) | 28% + 12% Compensation Cess | 40% | | Carbonated fruit beverages (fruit-pulp based with fizz) | 2202 | 40% (special slab) | 28% + 12% Compensation Cess | 40% | | Non-aerated fruit juices (100% juice / natural) | 2009 | 5% | 12% | 12% | | Energy drinks (carbonated) | 2202 | 40% (special slab) | 28% + 12% Compensation Cess | 40% | **Key update:** - The earlier 28% GST + 12% compensation cess on aerated drinks is now consolidated into a single 40% GST slab. - Natural fruit juices without carbonation now fall under the 5% GST slab. - No separate compensation cess applies under the revised structure. ## What Qualifies as Cold Drinks Under GST? Under GST, cold drinks and aerated beverages include: - Carbonated soft drinks (cola, lemon soda, orange soda) - Flavoured sparkling water - Sweetened beverages with carbonation - Carbonated energy drinks The **cold drink hsn code and gst rate** depend on the specific beverage classification, with applicable aerated and sweetened beverages under HSN 2202 generally attracting **40% GST**. These products fall under **HSN Code 2202** and are taxed at the **40% GST slab**. Live Demo Available Today ## Near Expiry Drinks? Move Them Before Loss Happens Trusted by 6,00,000+ Users 4.6 Google Rating \* No credit card required ## GST on Other Beverage Categories Some beverages fall under different GST slabs depending on their composition and packaging: | Beverage Type | GST Rate | | --- | --- | | Natural fruit juice (non-carbonated) | **5%** | | Tender coconut water (pre-packaged and labelled) | **5%** | | Flavoured milk / beverages containing milk | **5%** | | Lassi (pre-packaged and labelled) | **5%** | | Lassi (other than pre-packaged and labelled) | **Nil** | | Carbonated energy drinks | **40%** | The current 5% schedule includes fruit/nut juices, pre-packaged tender coconut water, beverages containing milk, and pre-packaged and labelled lassi. ## GST on Cold Drinks: Old vs. New Rates Explained (40% vs 5%) ![GST on cold drinks 40% vs 5%](https://busy-client.busy.in/media/image%208.png) **Get a Free Trial –** [**Best Accounting Software For Small Business**](https://busy.in/accounting-software/) ## How to Calculate GST on Cold Drinks The **gst rate on cold drinks** such as applicable aerated and sweetened beverages is **40%** under the revised GST structure. GST is calculated on the taxable value of the product. ### GST Calculation Formula: Final Price = Product Price + GST Amount Suppose a soft drink has a base price of ₹100. - GST Rate = 40% - GST Amount = ₹100 × 40% = ₹40 Final Price = ₹100 + ₹40 = ₹140 ## **Conclusion** The high **gst rate on cold drinks and aerated beverages** makes them one of the costliest items in the [**FMCG**](https://busy.in/accounting-software/fmcg/) space, not because of the price tag, but due to taxes. Understanding how it works helps consumers spend wisely and helps sellers price correctly. ## About the author **Jagdish Prasad** Jagdish Prasad is a Chartered Accountant with over 5 years of experience. He helps people and businesses with GST, income tax, and HSN codes. Jagdish makes sure his clients follow all tax rules and save money the right way. He also enjoys writing simple articles to help others understand taxes and stay updated with the latest rules. ## Frequently asked questions ### What is the GST rate on cold drinks? Most applicable aerated, sweetened, and flavoured cold drinks under HSN 2202 attract **40% GST** under the revised GST structure effective from 22 September 2025. Earlier, these beverages generally attracted **28% GST plus 12% Compensation Cess**. ### Are fruit juices taxed at the same rate as cola? No. Natural fruit juices and applicable non-carbonated fruit pulp or fruit juice-based drinks generally attract **5% GST** under the revised GST structure. In contrast, cola and other applicable aerated or carbonated soft drinks attract **40% GST**. ### Is there a different GST rate for local cold drink brands? No. GST depends on the product category and HSN classification, not on whether the brand is local or international. ### Can restaurants charge GST on cold drinks served? Yes. If the drink is supplied as part of restaurant service, GST is generally 5% without ITC. It becomes 18% only where the restaurant falls under the specified premises rules. ### Can sellers claim Input Tax Credit on cold drink supplies? Generally, yes, if they are making taxable supplies and meet the normal ITC conditions. 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