Traders' body CAIT on Monday made a case for lowering the GST rate on beverages from 28 per cent, which comes to 40 per cent after inclusion of cess, arguing that it blocks the working capital of small retailers.
The Goods and Services Tax (GST) Council in its meeting held on September 17, 2021 had recommended that ‘Carbonated Fruit Beverages of Fruit Drink' and ‘Carbonated Fruit Beverages of Fruit Drink' and ‘Carbonated Beverages with Fruit Juice' would attract GST rate of 28 per cent and cess of 12 per cent. This is being prescribed specifically in the GST rate schedule.
“CAIT's proposal is also in alignment with the recommendations made in the Economic Survey of 2023, which has suggested that India should move from Food Security to Nutritional Security. Naturally, a key component in that would be the proposed sugar based taxation system. Beverages are not a sin tax category as neither are they a luxury good nor are they a demerit product,” it stated.
CAIT Secretary General Praveen Khandewal said if GST tax rate is lowered rationally, it will increase the turnover of small shops which will yield more revenue to central and state governments.
Traders' body CAIT on Monday made a case for lowering the GST rate on beverages from 28 per cent, which comes to 40 per cent after inclusion of cess, arguing that it blocks the working capital of small retailers.
