New GST Tax Rates for Beverage Products Starting May 2026
The government has updated the tax classification codes for certain beverages, changing how they are taxed under GST starting May 1, 2026.
- Document
- Integrated Tax (Rate) 01/2026-Integrated Tax (Rate)
- Dated
- 30 Apr 2026
- Effective
- 1st May, 2026
- Act by
- 2026-05-01
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- New tax classification codes apply to specific beverage products.
- These changes align GST rules with the Finance Act 2026.
- The updated tax rates take effect from May 1, 2026.
- Businesses must verify their product HSN codes against the new list.
In short
Notification 01/2026-Integrated Tax (Rate) updates the HSN codes used to determine GST rates for specific drinks to match recent changes in the Finance Act.
What has changed
How it worked before
Previously, beverage products were classified under different HSN codes in the 5% and 40% tax brackets under Notification 9/2025.
What has changed
The government has replaced the old HSN codes with new ones for specific beverage categories, which may change the tax rate applicable to your products.
Who this affects
If you manufacture or sell beverages classified under HSN codes 2202 99 21, 2202 99 29, 2202 99 31, 2202 99 39, 2202 91 00, 2202 99 91, or 2202 99 99.
An example
A beverage company sells a specific fruit-based drink previously classified under an old HSN code. With this change, they must re-verify their product's code against the new list. If the code has moved to a different tax bracket, they must update their billing system to charge the correct GST percentage starting May 1, 2026.
What you should do
Check your product's HSN code against the updated list in the notification to ensure you are charging the correct GST rate.
Deadline · 2026-05-01If you do nothing
Using the wrong HSN code can lead to incorrect tax payments. This may result in tax notices, penalties for underpayment, or issues when claiming tax credits.
The terms explained
- HSN code
- A system of numbers used to classify goods for tax purposes.
- Integrated Tax
- A tax on goods moved between states.
- Notification
- An official government announcement of new rules.
The original document
| Issued by | GST |
|---|---|
| Document | Integrated Tax (Rate) 01/2026-Integrated Tax (Rate) |
| Full title | Seeks to amend Notification No 9/2025 - Integrated tax (Rate) to align them with changes made vide Finance Act, 2026 (as updated vide Corrigendum dated 06.05.2026) |
| Issued on | 30 April 2026 |
| Effective | 1st May, 2026 |
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