GST Council slaps highest tax rate on aerated and other sugar-based drinks

The GST Council, during its 56th meeting, decided to increase the Goods and Services Tax (GST) on items with added sugar, sweeteners, or flavourings, including aerated waters. The tax rate has been revised upwards from 28% to a substantial 40%.

Updated: Sep 03, 2025, 11.45 PM IST

GST rejig: Small cars, bikes under 350cc get tax cut to 18%; SUVs, big bikes, yachts hit with 40% slab

The GST Council, in its 56th meeting, increased the Goods and Services Tax (GST) on all goods containing added sugar, other sweetening matter, or flavouring, including aerated waters. The tax rate has been revised from 28% to 40%.

As per the new GST framework, approved by the Nirmala Sitharaman-led panel, most goods and services have now been brought under two main tax slabs- 5% and 18%. Sin goods attract the highest 40% rate.

In Video: GST rejig: Small cars, bikes under 350cc get tax cut to 18%; SUVs, big bikes, yachts hit with 40% slab

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