GST Reduction: A Boost for India's Beverage Industry

The non-alcoholic beverage industry is lobbying for a reduction in GST on aerated drinks from 28% to 18%, a move expected to make these products more affordable and spur significant investments, potentially generating 1.2 lakh jobs annually by 2030, according to the Indian Beverage Association (IBA).

The government is considering restructuring the GST into a two-slab system, with 5% and 18% rates, alongside a 40% rate for certain luxury and 'sin' products. These reforms, praised by the IBA, could unlock the sector's growth potential, supporting investment, employment, and farmer initiatives.

Industry giants like Coca-Cola, Pepsi, and Dabur back the IBA's call for change. The non-alcoholic beverage market, valued at USD 49.6 billion in 2023, is projected to grow to USD 64 billion by 2028, driven by GST rationalization and the industry's heavy reliance on agricultural goods.

(With inputs from agencies.)