The classification of fruit-based or fruit juice-based drinks have always been the issue of investigation by the tax authorities. The classification of such beverages under GST tariff is primarily dependent on the composition of the product. In the absence of any clear parameters prescribed under the GST Tariff to determine the classification based on the composition, reference was being made to the FSSAI regulations relied upon by various court’s rulings passed in pre-GST era.
As per these regulations, in case the drink contains fruit content > 10% (5% in case of lemon) then such drink is to be considered as fruit based …
