AICPDF: 35% GST on Aerated Beverages to Hurt Distributors, Urges Govt to Reconsider
FMCG distributors body All India Consumer Products Distributors Federation (AICPDF), representing 45 lakh distributors and 13 million kirana stores in the country, on Tuesday appealed to the government to reconsider the proposed GST rate hike to 35 per cent on aerated beverages.
Seeking a lower GST rate on aerated beverages to align them with other foods and beverages categories, the association said increasing the rate is likely to hurt distributors, retailers, and consumers, particularly in rural and semi-urban areas.
“Aerated beverages, while categorized as luxury products, serve as affordable refreshment options for lower-income groups and rural populations. Any tax increase will not only impact their consumption but also jeopardize the earnings of distributors and retailers across the country,” the association said in a statement.
The Group of Ministers (GoM) earlier this month on GST rate rationalisation had decided to increase the rate on products such as aerated beverages, cigarettes, tobacco and related products to 35 per cent from the current 28 per cent, PTI had reported. The GST Council is expected to discuss the hike in its meeting on December 21.
