GST Rate Amendment on Beverages from 1 May 2026
GST Rate Amendment on Beverages from 1 May 2026: HSN Code Changes Explained
This notification No. 01/2026-Central Tax (Rate) amends the earlier GST rate notification No. 9/2025-Central Tax (Rate) and becomes effective from 1st May 2026.
The government has reclassified certain beverage products under HSN code 2202 and updated the GST rates applicable to them.
HSN 2202 generally covers:
- Waters containing sugar/flavour
- Soft drinks
- Fruit-based beverages
- Other non-alcoholic drinks
What Has Changed?
The notification changes specific HSN codes in GST schedules.
1. Schedule I – GST @ 5% Total (2.5% CGST + 2.5% SGST)
Certain products now fall under:
Serial No. 150
Changed to:
- 2202 99 21
- 2202 99 29
Serial No. 151
Changed to:
- 2202 99 31
- 2202 99 39
Meaning: These beverage items will attract 5% GST total.
2. Schedule III – GST @ 40% Total (20% CGST + 20% SGST)
Serial No. 2
Changed to:
- 2202 99 90
- 2202 99 91
- 2202 99 99
Serial No. 3
Changed to:
- 2202 99 91
- 2202 99 99
Meaning: These products will attract 40% GST total.
Practical Impact: This appears to be a classification correction / restructuring of beverage HSN codes, likely to clearly separate:
Lower GST Category (5%) Likely:
- Nutritional drinks
- Fruit pulp based drinks
- Milk-based beverages
- Health drinks (depending on classification)
Higher GST Category (40%) Likely:
- Aerated drinks
- Energy drinks
- Carbonated sweetened beverages
- Similar products
Important for Businesses: If you deal in:
- Cold drinks
- Juice products
- Beverage imports
- Distribution of drinks
- FMCG beverage trade
Then from 1 May 2026 you should:
✅ Check product HSN code
✅ Update GST billing software
✅ Correct invoice tax rate
✅ Verify stock classification
Why Government Issued This?
Usually such notifications are issued to:
- remove ambiguity
- align customs + GST tariff codes
- prevent wrong tax rate usage
- classify beverages more accurately
Effective Date: 📌 1st May 2026
This notification is very important for beverage manufacturers and traders because wrong HSN mapping can cause:
- short payment of GST
- notices
- penalties
- ITC disputes
Also Read: GST ITC Set-Off Rules Changed from January 2026 — A Practical Guide for Taxpayers
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