GST rates and HSN code for Coca Cola.
| Chapter | Description | HSN Code | Rate (%) | CESS (%) | Effective Date | Rate Revision |
|---|---|---|---|---|---|---|
| Oil seeds and oleaginous fruits, miscellaneous grains,seeds and fruit; industrial or medical plants; straw and fodder | Plants And Parts Of Plants (Including Seeds And Fruits), Of A Kind Used Primarily In Perfumery, In Pharmacy Or For Insecticidal, Fungicidal Or Similar Purpose, Fresh Or Dried, Whether Or Not Cut, Crushed Or Powdered Coca Leaf | 12113000 | 5% | – | 01/07/2017 | – |
| Edible fruit and nuts; peel of citrus fruit or melons | Other Nuts, Fresh Or Dried, Whether Or Not Shelled Or Peeled – Kola Nuts (Cola Spp.) | 08027000 | 12% | – | 22/09/2017 1/07/2017 | – |
Coca-Cola, a universally recognized carbonated soft drink, is a staple in households and businesses worldwide. For those involved in the manufacturing, distribution, or sale of Coca-Cola in India, understanding its Harmonized System of Nomenclature (HSN) code and the applicable Goods and Services Tax (GST) is vital for accurate financial reporting and compliance.
Coca-Cola, as a sweetened and flavored aerated water, primarily falls under Chapter 22 of the HSN, which covers “Beverages, Spirits and Vinegar.” This chapter is specifically designed for various forms of liquid consumables.
More precisely, Coca-Cola is categorized under HSN heading 2202: “Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other non-alcoholic beverages, not including fruit or vegetable juices of heading 2009.”
Within this heading, the most commonly used HSN code for Coca-Cola and similar aerated soft drinks is 22021090. This subheading generally covers “Other” waters, including mineral and aerated waters, that contain added sugar or are flavored. Other related subheadings like 22021010 also specifically mention “Aerated soft drinks (Coca-Cola, Pepsi, etc.).”
The GST rate for Coca-Cola and other carbonated beverages has been notably high. Aerated soft drinks typically attract a 28% GST rate. Additionally, a 12% compensation cess is levied on these products, making the total tax burden effectively 40%. This high tax aims to discourage the consumption of sugary beverages and also contributes to the GST compensation fund for states. These rates have been in effect since July 1, 2017, the initial implementation of GST.
It’s important to differentiate Coca-Cola, the finished beverage, from its raw ingredients or related products. The provided data also shows HSN codes for “Coca Leaf” (HSN 12113000) and “Kola Nuts” (HSN 08027000). While these are indeed components that could be associated with the flavors of certain cola products, they are classified separately as agricultural or plant products and carry different GST rates (5% and 12% respectively). Similarly, HSN codes for beverage dispensing equipment or plastic articles branded with Coca-Cola would fall under their respective chapters.
For businesses, ensuring correct HSN classification for Coca-Cola as a finished carbonated beverage under HSN 2202, and applying the combined 28% GST + 12% compensation cess, is crucial for accurate billing and tax compliance.
Coca-Cola primarily falls under HSN Chapter 22.
Coca-Cola is generally classified under HSN heading 2202.
Coca-Cola attracts a 28% GST rate.
The high GST and compensation cess are often intended to discourage the consumption of sugary, non-essential beverages and to generate revenue for the GST compensation fund.
No, Coca-Cola is classified under HSN 2202, specifically for aerated and sweetened non-alcoholic beverages. Fruit juices typically fall under HSN 2009 or other sub-headings within 2202, and often have a lower GST rate (e.g., 12%).
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