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.