Carbonated Fruit Drinks Classified as Fruit Beverages, Taxable at 12% GST : Gauhati High Court

The Gauhati High Court ruled that carbonated fruit drinks should be taxed at 12% GST as 'fruit pulp or fruit juice-based drinks'.

The Revenue Department argued that XSS Beverages misclassified its fizzy drinks to reduce GST and claimed they should be taxed at 28% as 'aerated waters'.

However, the court held that as long as these drinks contain the required fruit content, they cannot be classified as mere aerated water.

XSS Beverages, which uses at least 10% fruit juice (5% for lime/lemon) as per FSSAI norms, argued for the lower tax rate.

The court upheld this and ruled in favor of the company.