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Key Highlights
- Classifying your beverages under the correct HSN codes ensures compliance with GST regulations and helps avoid costly penalties.
- The GST rates for different types of beverages (carbonated drinks, fruit juices, and alcoholic spirits) affect your pricing strategies.
- When exporting beverages, using the correct HSN code helps during customs clearance, reducing the risk of delays, fines, or additional charges.
- Accurately categorising your beverages with the right HSN codes simplifies GST filings and minimises the chance of errors or penalties during the filing process.
Confused about GST rates and HSN codes for beverages? Don't worry—you're not alone! Whether you're running a small beverage business or just curious about why your favourite drinks are priced the way they are, we're here to break it all down in simple terms.GST and HSN codes help in determining the correct tax rates for different products. So, it's important to know how they apply to the various types of drinks you sell or manufacture.Let's understand how you can make sure your business stays compliant. We’ll also include a handy table with the GST rates and HSN codes for easy reference.
What are HSN Codes and Why are They Important?
HSN codes serve as a global standard for classifying goods, and in India, these codes are important for calculating GST .For example, beverages, spirits, and vinegar fall under different HSN codes, each of which determines the applicable GST rate. Let’s explore some of these codes and how they impact your business.
GST Rates and HSN Codes for Beverages
When it comes to beverages, the GST rates and HSN codes can vary significantly depending on the type of drink you're dealing with. From refreshing non-alcoholic beverages like sodas and fruit juices to alcoholic spirits and vinegar, each category has its own classification and tax rate.
Cold Drinks and Non-Alcoholic Beverages
For products like sodas, carbonated drinks, fruit juices, and energy drinks, the applicable HSN code is 2202, and these are taxed at a GST rate of 28%.
Key Products:
- Carbonated drinks
- Energy drinks
- Packaged fruit juices (with or without added sugar)
Alcoholic Beverages (Spirits, Wines, and Beer)
Alcoholic beverages come with higher tax rates. Depending on the type of beverage, different
HSN codes apply:
- Beer and Ale : HSN code 2203 - GST rate: 18%
- Wines and Liquors : HSN code 2204 - GST rate: 28%
These products are also subject to excise duties at the state level, which can further increase the tax burden. Vinegar Vinegar, often used in food processing and as a condiment, falls under HSN code 2209, with a GST rate of 18%. Fermented Beverages Fermented drinks like kombucha, cider, and other alcohol-free or low-alcohol drinks come under HSN code 2206, and the GST rate varies from 12% to 18% depending on alcohol content. Also Read: Understanding the Impact of GST on Health Insurance: Changes in Rates and Policies
GST Rates and HSN Codes for Different Beverages
These classifications help you follow tax rules efficiently and also affect how you set your prices. By using the right codes, you can stay competitive and avoid mistakes or fines in your filings.Let’s break down how these codes work and what they mean for your business:
| HSN Code | Description | Rate (%) |
| 22087011 | - | 0% |
| 2201 | Drinking water packed in 20-litre bottles | 12% |
| 2201 | Water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container] Non-alcoholic Toddy, Neera, including date and palm neera | 0% |
| 2201 | WATERS, INCLUDING NATURAL OR ARTIFICIAL MINERAL WATERS AND AERATED WATERS, NOT CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER NOR FLAVOURED; ICE AND SNOW | 18% |
| 220110 | MINERAL WATERS AND AERATED WATERS | 18% |
| 22011010 | WATERS, INCLUDING NATURAL OR ARTIFICIAL MINERAL WATERS AND AERATED WATERS, NOT CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER NOR FLAVOURED; ICE AND SNOW—MINERAL WATERS AND AERATED WATERS : MINERAL WATERS | 18% |
| 22011020 | WATERS, INCLUDING NATURAL OR ARTIFICIAL MINERAL WATERS AND AERATED WATERS, NOT CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER NOR FLAVOURED; ICE AND SNOW-MINERAL WATERS AND AERATED WATERS: AERATED WATERS | 18% |
| 220190 | OTHER | 18% |
| 22019010 | WATERS, INCLUDING NATURAL OR ARTIFICIAL MINERAL WATERS AND AERATED WATERS, NOT CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER NOR FLAVOURED; ICE AND SNOW—OTHER : ICE AND SNOW | 5% |
| 22019090 | WATERS, INCLUDING NATURAL OR ARTIFICIAL MINERAL WATERS AND AERATED WATERS, NOT CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER NOR FLAVOURED; ICE AND SNOW—OTHER : OTHER | 18% |
| 2202 | WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURS, AND OTHER NON-ALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009 | 0% |
| 220210 | WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURED | 28% |
| 22021010 | WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURED, AND OTHER NON-ALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009—WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS | 0% |
| 22021020 | WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURED, AND OTHER NON-ALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009—WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS | 0% |
| 22021090 | WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURED, AND OTHER NON-ALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009—WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS | 0% |
| 220290 | OTHER | 0% |
| 22029010 | WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURED, AND OTHER NON-ALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009—OTHER : SOYA MILK DRINKS, WHETHER OR NOT SWEETENED | 0% |
| 22029020 | WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURED, AND OTHER NON-ALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009—OTHER : FRUIT PULP OR FRUIT JUICE BASED DRINKS | 0% |
| 22029030 | WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURED, AND OTHER NON-ALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009 - OTHER : BEVERAGES CONTAINING MILK | 0% |
| 22029090 | WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURS, AND OTHER NON-ALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009—OTHER : OTHER | Nil |
| 22029100 | OTHER NON-ALCOHOLIC BEVERAGES [OTHER THAN TENDER COCONUT WATER] | 18% |
| 220299 | OTHER | 0% |
| 22029910 | SOYA MILK DRINKS | 12% |
| 22029920 | FRUIT PULP OR FRUIT JUICE-BASED DRINKS | 12% |
| 22029930 | BEVERAGES CONTAINING MILK | 12% |
| 22029990 | WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURED, AND OTHER NON-ALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009 (Tender coconut water put up in unit container and bearing a registered brand name) | 12% |
| 22029990 | WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURS, AND OTHER NON-ALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009 (Other non-alcoholic beverages, other than tender coconut water and caffeinated beverages) | 18% |
| 22029990 | WATERS, INCLUDING MINERAL WATERS AND AERATED WATERS, CONTAINING ADDED SUGAR OR OTHER SWEETENING MATTER OR FLAVOURED, AND OTHER NON-ALCOHOLIC BEVERAGES, NOT INCLUDING FRUIT OR VEGETABLE JUICES OF HEADING 2009 (Caffeinated Beverages) | 28% |
| 2203 | BEER MADE FROM MALT | 0% |
| 22030000 | BEER MADE FROM MALT | 0% |
| 2204 | - | 0% |
| 22041000 | SPARKLING WINE OTHER WINE, GRAPE MUST WITH FERMENTATION PREVENTED OR ARRESTED BY THE ADDITION OF ALCOHOL | 0% |
| 220421 | IN CONTAINERS HOLDING 2 L OR LESS | 0% |
| 22042110 | PORT AND OTHER RED WINES | 0% |
| 22042120 | SHERRY AND OTHER WHITE WINES | 0% |
| 22042190 | OTHER | 0% |
| 220422 | IN CONTAINERS HOLDING MORE THAN 2 L BUT NOT MORE THAN 10 L | 0% |
| 22042210 | PORT AND OTHER RED WINES | 0% |
| 22042220 | SHERRY AND OTHER WHITE WINES | 0% |
| 22042290 | OTHER | 0% |
| 220429 | OTHER | 0% |
| 22042910 | PORT AND OTHER RED WINES | 0% |
| 22042920 | SHERRY AND OTHER WHITE WINES | 0% |
| 22042990 | OTHER | 0% |
| 22043000 | OTHER GRAPE MUST | 0% |
| 2205 | - | 0% |
| 22051000 | IN CONTAINERS HOLDING 2 L OR LESS | 0% |
| 22059000 | OTHER | 0% |
| 2206 | OTHER FERMENTED BEVERAGES (FOR EXAMPLE, CIDER, PERRY, MEAD); MIXTURES OF FERMENTED BEVERAGES AND NON-ALCOHOLIC BEVERAGES, NOT ELSEWHERE SPECIFIED OR INCLUDED | 0% |
| 22060000 | OTHER FERMENTED BEVERAGES (FOR EXAMPLE, CIDER, PERRY, MEAD); MIXTURES OF FERMENTED BEVERAGES AND NON-ALCOHOLIC BEVERAGES, NOT ELSEWHERE SPECIFIED OR INCLUDED | 0% |
| 2207 | Ethyl alcohol supplied to Oil Marketing Companies for blending with motor spirit (petrol) | 5% |
| 2207 | ETHYL ALCOHOL AND OTHER SPIRITS, DENATURED, OF ANY STRENGTH | 18% |
| 220710 | UNDENATURED ETHYL ALCOHOL OF AN ALCOHOLIC STRENGTH BY VOLUME OF 80% VOL. OR HIGHER | 18% |
| 22071011 | CONCENTRATES OF ALCOHOLIC BEVERAGES | 18% |
| 22071019 | OTHER | 18% |
| 22071090 | OTHER | 18% |
| 22072000 | ETHYL ALCOHOL AND OTHER SPIRITS, DENATURED, OF ANY STRENGTH | 18% |
| 2208 | - | 0% |
| 220820 | SPIRITS OBTAINED BY DISTILLING GRAPE WINE OR GRAPE MARC | 0% |
| 22082010 | SPIRITS OBTAINED BY DISTILLING GRAPE WINE OR GRAPE MARC | 0% |
| 22082020 | SPIRITS OBTAINED BY DISTILLING GRAPE MARC | 0% |
| 22082090 | SPIRITS OBTAINED BY DISTILLING GRAPE WINE OR GRAPE MARC | 0% |
How Does GST for Beverages Apply to Exports?
Accurate documentation is key to a smooth export process. It determines customs duties, taxes, and clearance and helps avoid delays or extra costs. Let's understand this in detail.
How Does GST for Beverages Work for Exports?
- Critical Role of HSN Code : The HSN code is used to determine the customs duties and taxes on exported beverages.
- Avoid Customs Delays : Incorrect HSN codes on invoices can lead to delays in customs clearance and may result in fines or additional charges.
- Compliant Export Process : Accurate HSN codes ensure that all exported goods comply with international regulations, making the export process smoother.
How HSN Codes Help with GST Filing
Understanding HSN codes is essential for accurate GST filings. The correct classification ensures that you're charging the appropriate GST rate, minimising errors and penalties during filing.
How HSN Codes Help with GST Filing
- Ensuring GST Compliance : The correct HSN code helps businesses stay compliant with the GST regulations.
- Charging the Correct GST Rate : Accurate classification ensures you're charging the proper GST rate based on the type of beverage.
- Avoiding Filing Errors : Using the right HSN code reduces the chances of mistakes in your GST filings, which could otherwise lead to audits or penalties.
- Differentiating Product Types : Properly categorising alcoholic and non-alcoholic beverages with separate HSN codes ensures that both are treated according to their tax rates.
Keep Your Business in Line with GST Regulations
Learning about GST and HSN codes for beverages, spirits, and vinegar might seem tricky, but with the right knowledge, you can ensure your business stays on track. From cold drinks to alcoholic spirits and vinegar, each product has a unique classification and tax rate that can impact your costs and pricing strategy.Carbonated drinks, such as sodas and energy drinks, are classified under HSN code 2202 and are subject to a 28% GST rate. This common beverage classification can directly influence the pricing strategies of beverage businesses.It's important to familiarise yourself with the various HSN codes and GST rates for the products you sell to avoid overcharging or undercharging while ensuring your business complies with the latest tax regulations.
Disclaimer
: The GST rates and HSN code information provided above are based on the most recent GST notifications, includingNotification No. 05/2020 dated 16th October 2020. While every effort has been made to ensure the accuracy of the details, the rates and codes may be subject to change. Please consult official resources like the CBIC website for the latest updates. We do not take responsibility for any errors or discrepancies in the information shared. Also Read: GST Impact on Indian Economy
FAQS - FREQUENTLY ASKED QUESTIONS
What is the HSN Code for fermented beverages?
Fermented beverages like kombucha and cider fall under HSN code 2206, with GST rates ranging from 12% to 18% depending on their alcohol content.
What’s the GST rate for carbonated drinks?
Carbonated drinks are classified under HSN code 2202 and attract a 28% GST.
What is the HSN Code for vinegar?
Vinegar falls under HSN code 2209 and is taxed at 18% GST.
Do I need a different HSN code for different brands?
No, HSN codes are assigned based on the type of product, not the brand name. If you’re selling the same type of product, the HSN code remains the same, regardless of the brand.
What is the GST rate for packaged fruit juices?
Packaged fruit juices come under HSN code 2202 and are subject to 28% GST.
Is there GST on non-alcoholic waters?
Non-alcoholic waters with added sugar or flavour are subject to 0% GST, while mineral waters are taxed at 18% GST.
What is the HSN code for beer?
Beer falls under HSN code 2203 and is taxed at 18% GST.
Are non-alcoholic beverages like fruit juices and soft drinks taxed differently?
Yes, non-alcoholic beverages like soft drinks and juices typically fall under HSN code 2202 with a 28% GST, while non-sweetened waters may attract 18% GST.
How does GST apply to alcoholic spirits?
Alcoholic spirits like whisky, rum, and brandy are taxed at 28% GST, and they fall under various HSN codes depending on their type (e.g., 2204 for wine and brandy).
Can I claim a refund on GST for beverages?
GST on beverages can be claimed as a refund under specific circumstances. Check with your GST consultant for more detailed information based on your business's situation.
