Coca Cola, Pepsi, Thums Up Prices Won't Hike Despite 40% GST; Minute Maid, Maaza, Tropicana and Real Fruit Juices Will Turn Cheaper

Mumbai, September 12: There will be no impact on cola prices because of Goods and Services Tax (GST) changes from September 22. There seems to be good news for Cola consumers as the prices of Coca Cola, Pepsi and Thums Up are most likely to remain unchanged despite them attracting 40 per cent GST. Under GST 2.0, carbonated fruit drinks, caffeinated beverages, fizzy energy drinks, fruit-juice-based fizzy beverages, non-alcoholic flavoured drinks, and all aerated waters which contain added sugar or sweeteners will attract 40 per cent GST and no cess.

Earlier, they used to attract 28 per cent GST with an additional 12 per cent as cess. That said, there is uncertainty among a few industry players over the tax rates for fruit-based drinks. Speaking to NDTV Profit, an executive at a large beverage company said, "So, there is no change in the tax rate on carbonated drinks and hence we don't expect sticker prices to either increase or decrease." GST 2.0: What Gets Cheaper and Costlier? New GST Rates Announced for Cars, Cigarettes, Life Insurance and More – List Here.

The Industry has welcomed the reduction in GST rates for fruit-based drinks, but isn't happy that the GST rates for carbonated beverages were unchanged. They are hoping for a lower rate for carbonated beverages and for such products to be declassified as "sin" goods. So why is the industry unhappy? According to a Modi government circular, the tax rate on fruit pulp or real fruit juices has been reduced to 5 per cent from 12 per cent.

Simply put, the prices of fruit beverages such as Tropicana juices, Minute Maid, Maaza, and Real fruit juices will become cheaper from September 22, when the new GST rates will come into effect. That said, the Central government is expected to issue a detailed notification on the 40 per cent GST for select items. The clarification will likely outline what qualifies as fruit juice and carbonated fruit beverages. GST Rate Cut: Tata Motors To Pass Full GST Reduction Benefit to Customers, List of Cars and SUVs That Will See Price Drops.

Ahead of the GST Council's meeting, the Indian Beverage Association (IBA) had placed a plea before the government to not put the carbonated drinks in the "sin goods" category. Demanding a GST rate reduction to 18 per cent, IBA had proposed a sugar-based taxation mode to differentiate low or no-sugar and fruit variants.

(The above story first appeared on LatestLY on Sep 12, 2025 08:24 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).