Milk and milk products were the biggest contributors to the company’s revenue, with a share of 72.47 per cent
The Indian Beverage Association (IBA) on Wednesday said it is hopeful that the 12 per cent cess on the carbonated beverages category is waived off in 2026, bringing down the tax on the category to 28 per cent.
It comes after several reports on Tuesday suggested that a Group of Ministers (GoM) on rate rationalisation had suggested an increase in Goods and Services Tax (GST) on ‘sin’ items like aerated beverages, tobacco to 35 per cent.
Currently, aerated beverages regardless of their sugar content attract a 28 per cent GST – the highest slab, along with a compensation cess of 12 per cent. This takes the total tax burden on the category to 40 per cent.
“Even zero sugar products are taxed at 40 per cent. We have made representations to all levels of the government, but taxation remains a bottleneck for us,” said CK Jaipuria, vice-chairman, IBA.
On Tuesday, the Central Board of Indirect Taxes and Customs called these reports “premature and speculative”.
“There should be a scientific reason behind the GST rates. If sugar is the problem, all sugary products should attract a higher slab. The tax structure is an impediment to investment in the industry,” JP Meena, secretary general, IBA told Business Standard.
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