Malt beverages without alcohol may soon be subject to the same GST rates as fizzy beverages. According to reports, the Karnataka GST Authority of Advance Ruling recommended raising the tax rate on beverages made with malt to 40%.
Currently, soft drinks are subject to a 40% GST, which consists of 28% GST and a 12% cess.
Essentially, a malt beverage is a fermented beverage whose main component is the grain, or seed, of the barley plant. There is no alcohol in it. It is promoted as a beer substitute.
Drinks made with malt now have an 18% GST.
According to reports, United Breweries (UB) has asserted that the 2018-released Kingfisher Radler beverage is not malt-based.
According to the manufacturer, it comes in a few flavours and is a substitute for beer. The beverage is claimed to contain sweetened aerated water.
