Distributors seek GST cut on bottled water, aerated drinks

AICPDF HAS SAID THAT REDUCING GST ON BOTTLED WATER WOULD ENSURE IMPROVED COMPLIANCE AND AFFORDABILITY

- Rajeev Jayaswal

A leading association of consumer goods distributors has urged a rethink on the classification of aerated beverages as “sin” goods and sought the lowering of the 18% Goods and Services Tax on bottled water ahead of the 56th GST Council meeting next month.

The All India Consumer Products Distributors Federation (AICPDF) said taxing aerated beverages as “sin” goods at the highest rate of 28% alongside cigarettes and tobacco products disregards the fact that over 70% of aerated drink sales come from small packs in the ₹10-20 range, consumed primarily by the lower-income groups. These products besides being currently placed in the highest GST slab of 28%, also attract a 12% compensation cess.