Classification of Fruit Juice-based Drinks

by | Dec 21, 2020 | Insight

Classification disputes have always been bone of contention between department and taxpayers. With several issues already settled down in pre-GST era, the same are resurfacing with onset of GST. One such issue is classification of Fruit Juice-based Drinks.

Since time immemorial, the revenue has sought to classify such goods as Carbonated Fruits Drinks under Heading 2202 10. Conversely, the taxpayers had been classifying these goods under Tariff Heading 2202 90 as Fruit Juice-based Drinks. Pursuant to litigations before different forums, the taxpayers triumphed before the Apex Court and CESTAT (Larger Bench). The recent amendment in Food Safety Regulations has added twist to this issue. The taxpayers dealing in these goods, are facing DGGI investigations wherein authorities seek to levy GST of 40% (including Compensation Cess) vs. 12% discharged by them. 

To throw light upon correct legal position and way forward for handling these investigations, Anshika Agarwal, Senior Associate at NITYA Tax Associates has coherently discussed issue and NITYA’s take in short video titled ‘Classification of Fruit Juice-based Drinks’ available at

Hope you find this an interesting watch. Please feel free to share your comments / feedback on the same.

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