Overview
The Ministry of Finance has issued new rate amendments impacting specific beverage classifications under the GST regime. The changes, notified on April 30, 2026, will come into effect from May 1, 2026 and modify earlier notifications issued in September 2025.
Key Highlights of the Notification
1. Amendments in IGST Rates
Under Notification No. 01/2026 - Integrated Tax (Rate):
- Changes have been made in Schedule I (5%) and Schedule III (40%)
- Specific HSN codes such as:
- 2202 99 21, 2202 99 29
- 2202 99 31, 2202 99 39
- 2202 99 90, 2202 99 91, 2202 99 99
have been substituted or reclassified for applicable GST rates
2. Parallel Amendments in CGST
Under Notification No. 01/2026 - Central Tax (Rate):
- Corresponding changes introduced in:
- Schedule I (2.5%)
- Schedule III (20%)
- These align with IGST revisions to maintain tax parity across intra-state supplies
3. Changes in UTGST Rates
Under Notification No. 01/2026 - Union Territory Tax (Rate):
- Similar revisions made for Union Territories:
- Schedule I (2.5%)
- Schedule III (20%)
- Ensures uniformity in GST structure across all jurisdictions
4. Effective Date
- All amendments are effective from May 1, 2026
What This Means for Businesses
These changes are particularly relevant for:
- Beverage manufacturers and distributors
- FMCG companies dealing in non-alcoholic drinks
- Importers/exporters under HSN 2202 classification
Businesses must:
- Update GST classification systems
- Review pricing strategies
- Ensure compliance in invoicing and returns
Conclusion
The latest GST notification introduces targeted updates in beverage classification under HSN 2202, impacting applicable tax rates across IGST, CGST, and UTGST. Businesses should proactively assess the implications to remain compliant from May 2026 onward.
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