Archive · 2 Sep 2025
GST Rate Cuts Sought by Exporters and Beverage Industry Bodies
Different groups in India are asking the government to change some taxes.
Exporters want the tax on shipping goods by air and sea to be the same, to make it cheaper to sell products to other countries.
The beverage industry, including groups like CAIT and IBA, wants to lower the tax on carbonated drinks.
They believe this will help small stores and businesses by making things more affordable.
Some groups also suggest taxing drinks based on their sugar content.
The government is considering these requests as part of a wider effort to simplify taxes.
Exporters seek uniform 5% GST on air and sea freight.
CAIT requests reduction in tax on carbonated beverages from 40% to 18%.
IBA proposes 18% GST for beverages under ₹30 and sugar-based taxation.
The GST Council is discussing potential tax structure changes.
Proposed changes aim to support businesses and align with international standards.
- Who
- Exporters, CAIT, IBA
- What
- Seeking GST rate reductions
- When
- September 2025
- Where
- India
- Why
- To boost exports, support small businesses, and align with international standards
Exporters
Government (Implicit)
GST Rate on Freight
Exporters
Advocate for a uniform 5% GST rate on both air and sea freight to reduce costs and support exports.
Government (Implicit)
Unclear; current air freight at 18% while sea freight is at 5%.
GST Rate on Beverages
Exporters
Advocate for an 18% GST rate on carbonated beverages to reduce costs and promote formalization.
Government (Implicit)
Unclear; current rate is 40%.
- Organizations
- VAFA, CAIT, IBA
- Key Figures
- Ekdam Husain, B. C. Bhartia
- Issue
- GST rates on freight and beverages
- Proposed Actions
- Uniform GST on freight, lower tax on carbonated beverages
- Affected Parties
- Exporters, small businesses, beverage industry
