Updated GST Tax Rates for Specific Beverage Products
New tax rates apply to certain beverage products classified under specific HSN codes starting May 1, 2026.
- Document
- Union Territory Tax (Rate) 01/2026-Union Territory 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
- Tax rates for specific beverage HSN codes have been updated.
- Changes affect goods under Schedule I at 2.5% and Schedule III at 20%.
- The new rates take effect from May 1, 2026.
- Businesses must verify their product HSN codes against the new list.
In short
This notification updates the Union Territory Tax (Rate) list to clarify which tax rates apply to specific beverage products. It ensures that goods under certain HSN codes are taxed at the correct percentage.
What has changed
How it worked before
Previously, the tax rates for these specific beverage products were governed by Notification No. 9/2025, which used different HSN code groupings.
What has changed
The government has updated the list of HSN codes assigned to the 2.5% and 20% tax brackets to ensure better alignment with current product classifications.
Who this affects
Businesses selling beverages classified under HSN codes 2202 91 00, 2202 99 21, 2202 99 29, 2202 99 31, 2202 99 39, 2202 99 91, or 2202 99 99.
An example
A beverage distributor sells a specific fruit-based drink classified under HSN 2202 99 21. Previously, they applied a certain tax rate based on the old notification. Starting May 1, 2026, they must ensure their invoices use the updated tax rate assigned to that specific HSN code under Schedule I.
What you should do
Check your product HSN codes against the updated list in this notification to confirm if your tax rate has changed. Update your billing software to reflect the correct tax percentage for these items.
Deadline · 2026-05-01If you do nothing
If you apply the wrong tax rate, you may face penalties for short-payment of taxes. You might also receive a tax notice requiring you to pay the difference plus interest.
The terms explained
- HSN code
- A standardized system used to classify goods for taxation purposes.
- Schedule I
- A list of goods taxed at a specific rate, in this case, 2.5%.
- Schedule III
- A list of goods taxed at a higher rate, in this case, 20%.
The original document
| Issued by | GST |
|---|---|
| Document | Union Territory Tax (Rate) 01/2026-Union Territory Tax (Rate) |
| Full title | Seeks to amend Notification No 9/2025 - Union Territory tax (Rate) to align them (as updated vide Corrigendum dated 06.05.2026) |
| Issued on | 30 April 2026 |
| Effective | 1st May, 2026 |
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