Rules by country / Asia Pacific / GST on cold drinks in India
GST on cold drinks in India: what 40% costs each drink
Since 22 September 2025, fizzy drinks with sugar, sweeteners or flavours, and caffeinated drinks, pay 40% GST with no cess. Other non-alcoholic drinks went from 18% to 40%, and juice drinks fell to 5%. We work out the price for every product.
At the GST rates in force since 22 September 2025. A guide, not tax advice: the rate depends on the product's HSN code.
A GST pricing review for India
What the new rates do to each product's price, and the most profitable response, with a price plan for each channel.
- The GST on every product, and its price before and after
- Pass on or absorb: the most profitable choice for each product, and how sure we are
- Which packs and price points to lead with
- A price plan for each channel, and an Excel model
How your results look
| Product | GST | On a ₹40 price | Our advice |
|---|---|---|---|
| Cola, 750ml | 40% | ₹16 | Hold the ₹60 point |
| Energy drink, 250ml | 40% | ₹16 | Pass on in full |
| Mango juice drink, 1 litre | 5% | ₹2 | Pass the cut on |
Fictional products. Every real result comes with the expected sales and profit, and a likely range.
Your options
Every option has a fixed price, agreed before we start.
GST pricing review
- The GST and best choice for each product
- Price plan for each retailer
- Scenario model and a walk-through
Pricing review with the GST
- Everything in the GST review
- Prices and promotions for the whole range
- How your products take sales from each other
Portfolio review
- Everything in the pricing review
- More retailers and data sources
- A plan for each channel
After the project: a refresh before each pricing round, from £2,000 (about ₹250,000). Prices are fixed in pounds sterling; amounts in rupees are a guide at October 2026 exchange rates. We're based in the UK and work remotely, in English, under NDA.
How it works
From the first call to your plan in about three weeks.
A free 15-minute call
Tell us about your range. We say whether a review would pay for itself, and quote a fixed price.
Your data
Sales by product and retailer, recipes and costs. We sign an NDA before anything moves.
Your plan
The GST on every product, the best price points and a price plan, walked through with your team.
GST on cold drinks: the detail
Open only what you need.
- Since
- 22 September 2025, under the GST rate changes agreed by the GST Council (GST 2.0)
- 40%
- Fizzy drinks with added sugar, sweeteners or flavours; caffeinated drinks; fizzy fruit juice drinks; other non-alcoholic drinks
- 5%
- Fruit pulp and fruit juice drinks that are not fizzy, down from 12%
- Cess
- The 12% compensation cess on fizzy and caffeinated drinks was removed and folded into the 40% rate
- Who it hits
- Fizzy drinks pay about the same as before (28% plus 12% cess); other non-alcoholic drinks went from 18% to 40%
Pass it on
Raise the price by the tax or more. Works for products whose sales hold up when the price rises.
Absorb it
Keep the price and take the cost. Works when a rise would push a product past a key price point and lose more profit than the tax.
Change the pack
A smaller pack can hold a key price point such as ₹20 or ₹40. Works when shoppers watch the price more than the size.
What is the GST on cold drinks in India?
40% since 22 September 2025 for fizzy drinks with sugar, sweeteners or flavours, and for caffeinated drinks. Fruit juice drinks that are not fizzy pay 5%.
Is there a cess on cold drinks under GST?
Not any more. The 12% compensation cess was removed on 22 September 2025 and folded into the 40% rate.
What is the GST on energy drinks in India?
40%, the same as fizzy drinks with sugar.
What is the GST on fruit juice drinks?
5% since 22 September 2025 for fruit pulp and fruit juice drinks that are not fizzy, down from 12%. Fizzy fruit drinks pay 40%.
How much does a GST pricing review cost?
A review of up to 10 products has a fixed price from £7,500 (about ₹950,000) and takes about three weeks. For 11 to 50 products, a full pricing review with the GST pricing built in costs around £17,500 (about ₹2.2 million). It starts with a free 15-minute call.
Do you work with brands in India?
Yes. We're based in the UK and work remotely and in English, under NDA. Prices are fixed in pounds sterling before we start, and the first step is a free 15-minute call.
- Deccan Herald, Cola to lose fizz: GST hike to 40% makes soft drinks, energy drinks costlier
- The Week (PTI), carbonated soft drinks and non-alcoholic beverages to become costlier with GST rate hiked to 40% (4 September 2025)
- ClearTax, GST on cold drinks: rates and HSN codes
Checked on 24 October 2026. Rules and rates change, so check the official source before making decisions. This page is not tax advice.