Beverage firms seek removal of 'sin good' tag

Looking to regain fizz

- Sharleen D'Souza

Amid the impending rejig in the goods and services tax (GST) rates, an association representing the country's beverages industry has appealed to the Centre to not classify aerated beverages as sin/demerit goods and bring it under the 18 per cent slab while citing their "mass consumption" as a reason.

In its plea, the Indian Beverage Association (IBA) said that independent analysis by Tax India Online shows that the sector's high price elasticity means GST rate rationalisation will drive volume growth and formalise demand.