Indian Beverage Association

16/09/2025

Exciting news! 🎉

The Indian Beverage Association (IBA) is proud to partner with Drinktec India 2025, the premier international trade fair for the beverage, dairy, and liquid food industry.

📅 Save the dates: November 13–15, 2025
📍 Venue: Bombay Exhibition Centre, Mumbai

Join industry leaders, innovators, and experts as they showcase the latest technologies, trends, and solutions shaping the future of beverages and liquid foods. 🌍✨

🔗 Learn more: drinktechnology-india.com



Ministry of Food Processing Industries, Government of India
Food Safety and Standards Authority of India
Ministry of Environment, Forest & Climate Change, Government of India
Department of Consumer Affairs, Government of India
Ministry of Agriculture & Farmer’s Welfare, Government of India
Ministry of Finance, Government of India

01/09/2025

Important Highlights: -

1.Aerated beverages in India currently attract a combined tax of 40%—comprising 28% GST plus a 12% compensation cess—due to their classification as “sin/demerit goods.”

2.With GST reform on the agenda, the government is considering a two-slab structure (5% and 18%), replacing the existing four-slab system (5%, 12%, 18%, 28%). A special 40% rate may apply to ultra-luxury and select sin goods.

3.IBA is advocating to reclassify aerated beverages into the 18% slab, removing the sin tax, to improve affordability and spur wider consumption.

4.The association projects that rationalising GST rates could lead to generating 1.2 lakh (120,000) new jobs annually by 2030.

5.The sector has already invested ₹50,000 crore, with plans for an additional ₹85,000 crore in the near future.

6.The beverage industry is a key buyer of agricultural goods, including sugar and mango, helping support and strengthen the agrarian supply chain and farmers’ incomes.

7.With 71% of transactions under ₹20, and 65% of consumers from lower socio-economic groups, aerated drinks exhibit high price sensitivity—a case for a lower tax pass-through.

8.IBA also proposes exploring a sugar-based taxation model, similar to international standards, instead of blanket classification as sin goods—given that healthier, low-/no-sugar variants exist.

9.An analysis suggests an initial revenue loss of ₹277 crore by 2025 but anticipates a net annual revenue gain of ₹32–591 crore from 2026 onward, thanks to increased compliance and consumption.

https://www.thehindubusinessline.com/economy/indian-beverage-association-pitches-for-rationalisation-of-gst-on-aerated-beverages/article69996960.ece

Ministry of Food Processing Industries, Government of India
Food Safety and Standards Authority of India
Ministry of Environment, Forest & Climate Change, Government of India
Department of Consumer Affairs, Government of India
Ministry of Agriculture & Farmer’s Welfare, Government of India
Ministry of Finance, Government of India

Indian Beverage Association advocates for reclassification of aerated beverages to 18% GST slab to boost demand and affordability.

28/08/2025

Key Highlights on GST Appeal by IBA: -

1.The Indian Beverage Association (IBA) has urged the Finance Ministry that low- and no-sugar aerated drinks, as well as fruit-based variants, should not be taxed like sin goods. They recommend a sugar-based taxation system aligned with global models.

2.Current Taxation: All aerated drinks attract 28% GST + 12% compensation cess (≈40%), placing them in the same category as to***co and pan masala.

3. Market Shift: Low/no-sugar variants are growing rapidly. Varun Beverages reported 55% of its Jan–Jun 2025 sales from these drinks, with sales doubling in 2024 and now making up over 10% of the total category.

4.IBA’s Argument: Blanket high taxation unfairly penalises healthier alternatives like low/no-sugar and fruit-based beverages, which are not comparable to traditional “sin goods.”

5.Policy Context: The plea comes ahead of the GST Council meeting in September, where tax slabs may be revised.

6.Industry Examples: Popular low/no-sugar products include Pepsi Black, 7Up No Sugar, Gatorade (PepsiCo) and Coke Zero, Diet Coke, Sprite Zero, Honest Tea, BodyArmor Lyte (Coca-Cola).

7. Health & Economy Impact: Reclassification could make healthier beverages more affordable, boost demand, and encourage manufacturers to expand low/no-sugar portfolios.

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Ministry of Food Processing Industries, Government of India
Food Safety and Standards Authority of India
Ministry of Food Processing Industries, Government of India
Department of Consumer Affairs, Government of India
Ministry of Agriculture & Farmer’s Welfare, Government of India
Ministry of Finance, Government of India

This development comes amid double-digit growth in no-sugar and low-sugar beverages. Varun Beverages, PepsiCo India's bottling partner, reported that 55 percent of its total sales between January and June 2025 came from low- or no-sugar drinks.

28/08/2025

Key Highlights on GST Reform Demand by IBA

1.GST Reduction Demand: The Indian Beverage Association (IBA) has urged the government to place aerated and non-alcoholic drinks under a single 18% GST slab and remove the 12% sin tax.

2.Current Taxes: At present, aerated drinks attract 28% GST plus 12% sin tax, which the industry terms as punitive for a mass-consumption product.

3.Proposed GST Structure: The government is considering moving to a two-slab GST regime of 5% and 18%, with a 40% rate on select luxury/sin goods. IBA demands beverages be placed in the 18% category.

4.Jobs & Affordability: Rationalising GST will make products more affordable and is projected to generate 1.2 lakh new jobs annually by 2030.

5.Investment Growth: The sector has invested ₹50,000 crore so far and plans an additional ₹85,000 crore. The industry was valued at USD 49.6 billion in 2023 and is projected to reach USD 64 billion by 2028.

6.Farmer Support: The industry is a large buyer of agricultural commodities like sugar and mango, strengthening rural supply chains and farmer incomes.

7.Inclusive Growth: Reclassification and GST rationalisation will unlock sector potential, ensuring consumer affordability, farmer support, employment, and economic growth.

8.Industry Leaders: IBA represents major players such as Coca-Cola, PepsiCo, Reliance, Bisleri, Dabur, and Red Bull.

Ministry of Food Processing Industries, Government of India
Food Safety and Standards Authority of India
Ministry of Environment, Forest & Climate Change, Government of India
Department of Consumer Affairs, Government of India
Ministry of Agriculture & Farmer’s Welfare, Government of IndiaI
Ministry of Finance, Government of India

28/08/2025

Key Highlights on GST Reform Demand by IBA: -

1. Request: The Indian Beverage Association (IBA) has urged the government to reduce GST on aerated and non-alcoholic drinks to 18% and remove the 12% sin tax.

2. GST Restructure Proposal: The government is considering moving to a two-slab GST structure — 5% and 18% — plus a special 40% rate for ultra-luxury and sin goods, replacing the current 4-tier system.

3. Affordability & Demand: Carbonated drinks are highly price-sensitive — 71% of transactions are at ₹20 or less, and 65% of consumers belong to lower socio-economic groups. Rationalisation would help maintain affordability for mass consumers.

4. Job Creation: Rationalising GST could create 1.2 lakh new jobs annually by 2030, especially boosting rural employment.

5. Investments: The sector has invested ₹50,000 crore in recent years and plans an additional ₹85,000 crore if GST is rationalised.

6. Industry Growth: The non-alcoholic beverage sector, valued at USD 49.6 billion in 2023, is projected to reach USD 64 billion by 2028, growing faster than global averages.

7. Farmer Impact: The industry is a large buyer of agricultural commodities like sugar and mango, benefiting farmers and strengthening the rural supply chain.

8. Industry Leaders: IBA represents leading players including Coca-Cola, PepsiCo, Reliance, Bisleri, Dabur, and Red Bull.



Ministry of Food Processing Industries, Government of India
Food Safety and Standards Authority of India
Ministry of Environment, Forest & Climate Change, Government of India
Department of Consumer Affairs, Government of India
Ministry of Agriculture & Farmer’s Welfare, Government of IndiaI
Ministry of Finance, Government of India

The Indian Beverage Association requests a GST reduction on aerated drinks. They propose lowering it to 18 percent. This move aims to boost affordability and investments. The association anticipates creating 1.2 lakh jobs annually by 2030. They highlight the industry's significant investments and ag...

28/08/2025

Key Highlights on GST Reform Demand by IBA

1. Current tax burden: Aerated (non-alcoholic) drinks currently face 28% GST plus a 12% sin tax.

2. What IBA is asking: The Indian Beverage Association (IBA) is urging the government to place aerated drinks under the 18% GST slab as part of the GST reclassification.

3. Planned GST overhaul: The government is proposing to simplify GST to two slabs — 5% and 18% — with a special 40% rate for select ultra-luxury items and certain sin goods.

4. Jobs argument: IBA says rationalised GST could help generate about 1.2 lakh new jobs annually by 2030, boosting rural livelihoods.

5. Investment outlook: The sector has already invested ₹50,000 crore and plans an additional ₹85,000 crore if rates are rationalised.

6. Market scale & growth: IBA states the non-alcoholic beverage industry was valued at USD 49.6 billion in 2023 and could reach USD 64 billion by 2028.

7. Farmer & supply-chain impact: The industry is a major buyer of agricultural inputs (e.g., sugar, mango), so lower taxes are presented as beneficial to farmers and the rural supply chain.

8. Price sensitivity / consumer profile: Carbonated beverages are highly price-sensitive — 71% of transactions are at ₹20 or less, and 65% of consumers belong to lower socio-economic classes; IBA argues this supports keeping prices affordable.

9. Who’s behind the push: IBA members include major players such as Coca-Cola, PepsiCo, Reliance, Bisleri, Dabur, and Red Bull.

10. Overall takeaway: IBA frames GST rationalisation as a lever to improve affordability, unlock investment, support farmers, and drive inclusive sectoral growth.



Ministry of Food Processing Industries, Government of India
Food Safety and Standards Authority of India
Ministry of Environment, Forest & Climate Change, Government of India
Department of Consumer Affairs, Government of India
Ministry of Agriculture & Farmer’s Welfare, Government of India
Ministry of Finance, Government of India

The domestic beverage association has urged the government to bring aerated, non-alcoholic beverages under its GST reform preview and make the drinks more affordable for the common people

28/08/2025

Important pointers (Business Standard report)

1. The Indian Beverage Association (IBA) has asked the govt to drop carbonated drinks from the “sin/demerit” category and bring them under the 18% GST slab (vs the current 28% GST + 12% compensation cess = 40%).

2. Rationale: these are mass-consumption products; high taxes disproportionately burden low-income buyers—71% of transactions are at ₹20 or less; 65% of consumers are lower SEC.

3. IBA proposes a sugar-based taxation model, aligned with global practice, to differentiate low/no-sugar and fruit variants.

4. Elastic demand: analysis cited by IBA pegs price elasticity at ~1.6; rate rationalisation would boost volumes and formalise demand.

5. Fiscal impact: a ₹277 crore hit estimated in 2025, turning into ₹32–₹591 crore annual surplus from 2026 on higher compliance/consumption. Business Standard

6. Fruit juices: industry seeks 5% GST (from 12% now).

7. Farm & retail linkages: industry buys about 20 lakh MT sugar and 12 lakh MT mango annually; retailer margins 19–24%—lower taxes could pass benefits down the chain.

8. Context: govt is considering a two-slab GST (5% & 18%); the 12% slab may move to 5%; reforms were flagged in the PM’s address.

Ministry of Food Processing Industries, Government of India
Food Safety and Standards Authority of India
Ministry of Environment, Forest & Climate Change, Government of India
Department of Consumer Affairs, Government of India
Ministry of Agriculture & Farmer’s Welfare, Government of IndiaI
Ministry of Finance, Government of India

Currently, aerated beverages are classified as sin/demerit goods, leading to 40 per cent taxation (28 per cent GST and an additional 12 per cent compensation cess).

28/08/2025

Key Highlights on GST Reform Demand by IBA*

1. GST Reduction Demand: Non-alcoholic beverage sector urges govt. to reduce GST on aerated drinks from 28% + 12% sin tax to a single 18% slab.

2. Affordability Boost: Lower GST will make products more affordable for mass-market consumers, where 71% of transactions are at ₹20 or less.

3. Investment Growth: Sector has already invested ₹50,000 crore and plans ₹85,000 crore more, if GST is rationalised.

4. Farmer Support: Industry is a major procurer of sugar & mango, directly benefiting Indian farmers and rural supply chains.

5. Job Creation: Rationalised GST could generate 1.2 lakh new jobs annually by 2030, strengthening rural and urban employment.

6. Industry Growth: Valued at USD 49.6 billion in 2023, projected to reach USD 64 billion by 2028, growing faster than global averages.

7. Inclusive Growth: GST reforms will unlock sector potential, driving investment, farmer welfare, consumer affordability, and overall economic growth.

8. Industry Leaders Involved: Coca-Cola, PepsiCo, Reliance, Bisleri, Dabur, and Red Bull are key members of the Indian Beverage Association (IBA) leading this reform push.

Ministry of Food Processing Industries, Government of India
Food Safety and Standards Authority of India
Ministry of Environment, Forest & Climate Change, Government of India
Department of Consumer Affairs, Government of Indiadvocacy
Ministry of Agriculture & Farmer’s Welfare, Government of India
Ministry of Finance, Government of India

https://www.moneycontrol.com/news/business/beverage-makers-seek-18-percent-slab-removal-of-sin-tax-in-new-gst-regime-citing-mass-consumption-13493354.html?fbclid=PAQ0xDSwMcJ5pleHRuA2FlbQIxMQABp5jS7dZs2dhyaS5IsPK6Mf9qYamHMWgstNYiRME0KpL8Dw9GPBCeOyIrPM21_aem_fljNLmduhL6U_qcmrMlmLQ

Currently, aerated drinks attract 28 per cent GST and a sin tax of 12 per cent.

18/08/2025

A delegation from the Indian Beverage Association (IBA) recently held a meeting with Shri D.C. Rana, IAS, Director of the Department of Environment, Science & Technology, Government of Himachal Pradesh, at Paryawaran Bhawan. The meeting focused on addressing critical challenges faced by the non-alcoholic beverage sector.

The primary topic of discussion was the recent prohibition order banning the use of PET bottles (up to 500 ml) at government events and meetings, HPTDC hotels, and private hotels. Representatives from Bisleri, Reliance, and Parle participated in the discussions, emphasizing the widespread impact of this ban on the availability of safe drinking water for tourists and consumers throughout the state. They also pointed out that the ban does not exempt Brand Owners and Manufacturers who comply with Extended Producer Responsibility (EPR) norms.

The Himachal Pradesh government has requested detailed information regarding the PET bottle collection mechanisms and locations of recycling facilities, and will decide on subsequent measures based on these insights.

Ministry of Food Processing Industries, Government of India
Food Safety and Standards Authority of India
Ministry of Environment, Forest & Climate Change, Government of India
Department of Consumer Affairs, Government of India
Ministry of Agriculture & Farmer’s Welfare, Government of India
Ministry of Finance, Government of India

11/08/2025

The IBA delegation meets Principal Director General, DGGST, Mr. Chandra Prakash Goyal and Additional Director, Mr. Prashant Kumar Jha at DGGST office. Overview of NAB sector, Need for Tax rationalization of carbonated beverages, Global sector scenario, Barriers to entry of startups in this segment & Revenue Neutrality formed premise of the discussion. The DGGST assured the IBA of furthering the request and plea to the Relevant Authorities.

Ministry of Food Processing Industries, Government of India
Food Safety and Standards Authority of India
Ministry of Environment, Forest & Climate Change, Government of India
Department of Consumer Affairs, Government of India
Ministry of Agriculture & Farmer’s Welfare, Government of India
Ministry of Finance, Government of India

07/08/2025

https://www.linkedin.com/posts/drinktecindia_nacannouncement-drinktecindia2025-nac-activity-7359172948190027777-qQk6?utm_source=share&utm_medium=member_android&rcm=ACoAACjh4X4BiAvqrKtwyEDZIP6AwnK40mAP-vE

Ministry of Food Processing Industries, Government of India
Food Safety and Standards Authority of India
Ministry of Environment, Forest & Climate Change, Government of India
Department of Consumer Affairs, Government of India
Ministry of Agriculture & Farmer’s Welfare, Government of India
Ministry of Finance, Government of India

We are excited to officially announce our National Advisory Committee (NAC) members! 👥 With a diverse group of talented industry leaders on board, we're set for impactful collaborations! 🚀 We just completed our first NAC meeting, and it was a huge success! P...

25/07/2025

The Hon’ble Union Minister of State for Health and Family Welfare, Shri Prataprao Jadhav, inaugurated FSSAI’s National Stakeholder Consultation on “Sustainable Packaging for Food Business: Emerging Global Trends and Regulatory Framework” held in Mumbai.

Speaking at the event, Shri Jadhav highlighted the growing significance of sustainable food packaging and remarked, “India has the potential to become a global leader in sustainability by integrating its traditional ecological knowledge with modern innovations.”

IBA's position was highlighted to Union State Minister MoHFW Shri Prataprao Jadhav, on Recycling Regulation by Mr. Mohit Chaudhary, Director (Technical), IBA.

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Ministry of Food Processing Industries, Government of India
Food Safety and Standards Authority of India
Ministry of Environment, Forest & Climate Change, Government of India
Department of Consumer Affairs, Government of India
Ministry of Agriculture & Farmer’s Welfare, Government of India
Ministry of Finance, Government of India