AAR Clarifies Kingfisher Radler Rate


The Karnataka GST Authority of Advance Ruling (AAR) has stated that GST on malt beverages may attract GST on the same basis as soft drinks.

Soft drinks, at present, attract 40% GST which includes 28% GST with 12% tax.

A malt drink is basically a fermented drink in which the main ingredient is the grain or seed of the barley plant. It does not contain alcohol. It is presented as an alternative to beer. Malt-based beverages are currently subject to 18% GST.

The company, an alcoholic beer maker, said United Breweries (UB) claimed its Kingfisher Radler drink, which launched in 2018, is not a malt drink. The company said it comes in a few flavors and is an alternative to beer.

A coram from State Member Dr MP Ravi Prasad and Core Member Sri Kiran Reddy said that “the product ‘Kingfisher Radler’ has different variants and all the variants deserve to be classified as carbonated soft drinks. fruit drinks, all covered by tariff heading 2202 99 90. Accordingly, the product attracts GST of 28% as well as the applicable compensation tax of 12% in terms of Sl.No.12B of Schedule IV of the notification n°1/2017-Central Tax (Rat dated 28.06.2017, as amended.”

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In Re: M/s UNITED BREWERIES LIMITED

CITATION: 2022 TAXSCAN (AAR) 244



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