Caffeinated drinks are today’s trend intending to meet the need for daily hustle. No wonder such habbits cost us our sleep. But, is that the only cost weighing us down?
Caffeinated drinks by their very nature are meant to deprive us of our sleep. At the same time, they do burden us with additional monetary costs. In the GST Law, caffeinated drinks attract Cess at 12%. This move was made with the purpose to bring caffeinated drinks at par with the Aerated drink which was covered under items chargeable to cess since the inception of GST. Hence, to resolve the conflict between the two in terms of tax rates, cess was introduced on caffeinated drinks vide Notification no. 2/2019- Compensation Cess( Rate) dated 30.09.2019.
Cess is levied in order to compensate the states for the revenue lost by them on account of the shift from the previous tax regime to GST. Hence, caffeinated drinks do deprive us of our sleep. Moreover, GST has now got it pricey.
