The cold drink hsn code is 2202, and aerated, sweetened or flavoured soft drinks, carbonated fruit drinks and caffeinated energy drinks are taxed at 40%, the demerit slab. Non carbonated fruit drinks, milk based drinks, plant based milk drinks and fruit juices are 5%.
Plain soda water without sugar or flavour is water under 2201 at 5%. Shops and distributors therefore carry two very different rates in one cooler, and a wrong rate on a cola line costs 35% of the price in tax. This page lists each drink, explains the carbonated and caffeinated tests, and shows a distributor's bill. More groceries are on the food hub.
Cold drinks and juices: codes and GST rates
Item / HSN / GST- Aerated soft drinks with sugar or flavour40%Demerit slab
- Caffeinated and energy drinks40%Caffeinated beverages
- Carbonated fruit drinks40%Carbonated with fruit juice
- Fruit pulp or fruit juice based drinks, not carbonated5%Fruit drinks
- Beverages containing milk5%Flavoured milk drinks
- Plant based milk drinks, soya milk5%Ready to drink
- Fruit and vegetable juices, no added sugar5%Unfermented juices; orange juice 2009 11
- Plain soda water without sugar or flavour5%Aerated water
- Packaged drinking water5%Not sweetened
- Tender coconut water, pre-packaged5%Loose is nil
Quick facts
HSN heading
2202: waters with added sugar or flavour, other non-alcoholic drinksAerated and sweetened drinks
40%Juices and fruit drinks
5% (2.5% CGST + 2.5% SGST)Rate before the reform
28% plus cess for aerated drinksDigits to print
4 digits up to Rs 5 crore turnover, 6 aboveCommon wrong code
2201 for flavoured soda (that is 2202)
Cold drink hsn code and gst rate table
| Drink | HSN | GST |
|---|---|---|
| Cola, lemon soda, orange soda (sweetened) | 2202 10 | 40% |
| Flavoured sparkling water | 2202 10 | 40% |
| Energy drinks, caffeinated drinks | 2202 99 90 | 40% |
| Carbonated fruit drink | 2202 | 40% |
| Mango drink, fruit drink (not carbonated) | 2202 99 20 | 5% |
| Flavoured milk, lassi drinks in bottles | 2202 99 30 | 5% |
| Soya milk, almond drink | 2202 99 | 5% |
| Fruit juice, no added sugar | 2009 89 | 5% |
| Plain soda water | 2201 10 | 5% |
| Packaged drinking water | 2201 90 | 5% |
| Tender coconut water, packed | 2009 89 90 | 5% |
Soft drink gst rate: why 40%
Schedule III puts all goods (including aerated waters) containing added sugar or other sweetening matter or flavouring, other non-alcoholic beverages not covered in Schedule I, caffeinated beverages and carbonated beverages of fruit drink or with fruit juice at 40%. Before the reform, aerated drinks paid 28% plus compensation cess; now the cess is gone and the GST is 40%.
Juice hsn code and fruit drinks
Unfermented fruit and vegetable juices without added spirit are 2009 89 and the related lines at 5%. Fruit pulp or fruit juice based drinks that are not carbonated are 2202 99 20 at 5%. Once a fruit drink is carbonated, it moves to 40%. Read the label: "carbonated" or "sparkling" on a fruit drink means 40%.
Soda hsn code and gst rate
Plain soda water without sugar or flavour is aerated water under 2201 10 at 5%. Flavoured soda or sweetened soda is 2202 10 at 40%. Hotels and cafes mixing soda into mocktails sell restaurant service at 5% without credit; see restaurants.
Distributor's invoice
Beverage distributor to a store: Cola 600 ml, HSN 2202 10, 240 bottles, Rs 7,200, GST 40% Rs 2,880. Mango drink 600 ml, HSN 2202 99 20, 240 bottles, Rs 6,000, GST 5% Rs 300. Total Rs 16,380.
On a local sale each tax splits in half: 20% CGST and 20% SGST on the cola, 2.5% each on the mango drink. Packaged water is on the water bottle page and milk on the milk page.
Drink makers and distributors should read this as background only. Sugar, flavour, carbonation and caffeine decide the slab, so check the product label against the GST portal entry and ask a GST practitioner or chartered accountant about new drinks.
Frequently asked questions
How much GST is charged on cold drinks?
Aerated, sweetened or flavoured soft drinks are taxed at 40%. Non carbonated fruit drinks and juices are 5%.
What is the 2202 hsn code?
2202 covers waters with added sugar or flavour and other non-alcoholic beverages.
What is the juice hsn code and gst rate?
Fruit juices are 2009 89 and related lines, at 5%.
What is the soda gst rate?
Plain soda water is 5%. Flavoured or sweetened soda is 40%.
Are energy drinks taxed at 40%?
Yes. Caffeinated beverages are in the 40% slab.