Bengaluru, Sep 21 (SocialNews.XYZ) In a setback to United Breweries Ltd, the Karnataka bench of the GST's Authority for Advance Ruling (AAR) has held that its 'Kingfisher Radler' non-alcoholic malt drink is a carbonated beverage fruit drink, thereby attracting GST of 28 per cent along with a 12 per cent cess.
UB, which had introduced 'Kingfisher Radler' in 2018 as a non-alcoholic alternative to beer, had approached the AAR in 2020, seeking the product be bracketed under non-alcoholic drinks.
The applicant had submitted that while alcoholic beer products are made of barley malt and contain 1.2 to 1.8 per cent alcohol by volume (ABV), their product which is also derived from barley malt, has 0 per cent ABV, apart from less sugar content. The product is available in different fruit flavour variants. The applicant had also submitted among others, that the product is not available in PETA bottles like carbonated fruit drinks.
The AAR noted that to be classified as non-alcoholic, malt drinks must have alcohol content less than 5 per cent ABV. However, the applicant's product has 0 per cent ABV, bringing it under the carbonated beverage tariff heading which attracts GST of 28 per cent and also 12 per cent cess.
In its order dated September 14, the AAR Karnataka Bench ruled: "The product 'Kingfisher Radler' has different variants and all the variants merit classification as carbonated beverage of fruit drink all covered under tariff heading 2202 99 90. Accordingly the product attracts GST @28 per cent along with applicable compensation cess of 12 per cent in terms of Sl No 12B of Schedule IV to the notification No 1/ 2017 - Central Tax (Rate) dated 28.06.2017 as amended."