New Delhi: Enthusiasm To add fruit juice to carbonated drinks has again haunted regional drink makers, because these products are currently charged on 28% GST with an additional 12% of Cess compensation.
They previously paid 12%.
While some local companies have climbed the MRP of Rs 2, most others see how to get out of a crowded market where RS 10 is the average MRP.
“Almost all local players stop producing carbonated soft drinks after they realize that adding fruit to a drink with a lower tax,” said the owner of one of the largest regional drink makers.
“However, a large percentage, does not increase the amount needed to get money fast.” While adding fruit juice to carbonated drinks the price is about 5% more for the manufacturer, TOI is the first to report that most of them are under the lens because they are suspected of avoiding taxes.
Local Soft Drink Companies Beaten by GST Hike
