The Karnataka GST Authority of Advance Ruling (AAR) has said that GST on malt-based drinks may attract GST on par with carbonated drinks.
Soft drinks, at present, attract 40 per cent GST which includes 28% GST along with a cess of 12%.
A malt drink is basically a fermented drink in which the primary ingredient is the grain, or seed, of the barley plant. It doesn’t contain alcohol. It is being touted alternative to beer. Malt-based drinks are currently levied 18% GST.
The company, a manufacturer of alcoholic beer, said that United Breweries (UB) has claimed that its drink Kingfisher Radler, which was launched in 2018, is not a malt-based drink. The company said that it is available in a few flavours and is an alternative to beer.
A coram of State Member Dr. M P Ravi Prasad and Central Member Sri Kiran Reddy held that “The product “Kingfisher Radler’ has different variants and all the variants merit classification as carbonated beverages of fruit drink, all covered under tariff heading 2202 99 90. Accordingly the product attracts GST 28% along with applicable Compensation Cess of 12% in terms of Sl.No.12B of Schedule IV to the Notification No.1/ 2017-Central Tax (Rat dated 28.06.2017, as amended.”
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