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CHAPTER 22
1. This Chapter does not cover :
(a) products of this chapter (other than those of heading 2209) prepared for culinary purposes and thereby rendered unsuitable for consumption as beverages (generally heading 2103);
(b) sea water (heading 2501);
(c) distilled or conductivity water or water of similar purity (heading 2853);
(d) acetic acid of concentration exceeding 10% by weight of acetic acid (heading 2915);
(e) medicaments of heading 3003 or 3004; or
(f) perfumery or toilet preparations (Chapter 33).
2. For the purposes of this Chapter and of Chapters 20 and 21, the “alcoholic strength by volume” shall be determined at a temperature of 20°C.
3. For the purposes of heading 2202, the term “non-alcoholic beverages” means beverages of an alcoholic strength by volume not exceeding 0.5% vol. Alcoholic beverages are classified in headings 2203 to 2206 or heading 2208 as appropriate.
For the purposes of sub-heading 2204 10, the expression “sparkling wine” means wine which, when kept at a temperature of 20°C in closed containers, has an excess pressure of not less than 3 bars.
1. For the purposes of tariff item 2207 10 12, “Spirits for industrial use” means rectified spirits which are used for industrial preparation of pharma, food, healthcare products or such other products, except for use in preparation of alcoholic liquors for human consumption.
» Nil IGST – Nil CGST – Nil SGST/ UTGST : Heading No. 2201 :
& 2/2017-I.T. (Rate), dated 28-6-2017 and
» Nil IGST – Nil CGST – Nil SGST/UTGST : Heading No. 2201 :
& 2/2017-I.T. (Rate), dated 28-6-2017 and
» 5% IGST or 2.5% CGST + 2.5% SGST/ UTGST : Heading No. 2201 90 10 : (Rate) & 1/2017-I.T. (Rate), dated 28-6-2017 CHAPTER
(1)
(2)
# Central CGST State/UT SGST/ UTGST InterState IGST ‡ Compensation Cess
(3) (4) (5) (6) (7)
» 12% IGST or 6% CGST + 6% SGST/ UTGST : Heading No. 2201 : — & 1/2017-I.T. (Rate), dated 28-6-2017 and
» 18% IGST or 9% CGST + 9% SGST/ UTGST : Heading No. 2201 : C.T. (Rate) & 1/2017-I.T. (Rate), dated 28-
2201 10 -
2201 10 10 Mineral waters .............. l 6%/9% 6%/9% 12%/18% Nil
2201 10 20 Aerated waters l 9% 9% 18% Nil
2201 90 -
2201 90 10 Ice and snow l 2.5% 2.5% 5% Nil
2201 90 90 Other .................. l Nil/6% /9% Nil/6% /9% Nil/12% /18% Nil
2202
» 12% IGST or 6% CGST + 6% SGST/ UTGST : Heading No. 2202 99 10 : 1/2017-C.T. (Rate) & 1/2017-I.T. (Rate), dated 28-6-2017 and SGST/ UTGST
» 12% IGST or 6% CGST + 6% SGST/UTGST : Heading No. 2202 99 20 : & 1/2017-I.T. (Rate), dated 28-6-2017 and
» 12% IGST or 6% CGST + 6% SGST/ UTGST : Heading No. 2202 99 30 : — Vide 1/2017-I.T. (Rate), dated 28-6-2017 and
» 18% IGST or 9% CGST + 9% SGST/ UTGST : Heading No. 2202 91 00, 2202 99 90 : O
Nos. 1/2017-C.T. (Rate) & 1/2017-I.T. (Rate), dated 28-6-2017 and SGST/ UTGST
(4) (5) (6) (7)
» 28% IGST or 14% CGST + 14% SGST/ UTGST : Heading No. 2202 10 :
Nos. 1/2017-C.T. (Rate) & 1/2017-I.T. (Rate), dated 28-6-2017 and SGST/ UTGST
» 28%
or 14%
+ 14%
UTGST : Heading No. 2202 99 90 : 1
Nos. 1/2017-C.T. (Rate) & 1/2017-I.T. (Rate), dated 28-6-2017 and SGST/ UTGST
» 28% IGST or 14% CGST + 14% SGST/ UTGST : Heading No. 2202 : 2 — Vide 1/2017-I.T. (Rate), dated 28-6-2017 and
2204 21
2204 21 10 Port and other red wines
2204 21 20 Sherry and other white wines
2204 21 90 Other
2204 22
2204 22 10 Port and other red wines ..........
2204 22 20 Sherry and other white wines
2204 22 90 Other ..................
2204 29 10 Port and other red wines
2204 29 20 Sherry and other white wines
2204 29 90 Other
2204 30 00 - Other grape must
2205 10 00 - In containers holding 2 l or less .......
2205 90 00 - Other
2206 00 00
2207 » 15% IGST or 2.5% CGST + 2.5% SGST/ UTGST : Heading No. 2207 : — Vide 1/2017-I.T. (Rate), dated 28-6-2017 and » 218% IGST or 9% CGST + 9% SGST/ UTGST : Heading No. 2207 : Nos. 1/2017-C.T. (Rate) & 1/2017-I.T. (Rate), dated 28-6-2017 and SGST/ UTGST » 18% IGST or 9% CGST + 9% SGST/ UTGST : Heading No. 2207 10 12 :
Nos. 1/2017-C.T. (Rate) & 1/2017-I.T. (Rate), dated 28-6-2017 and SGST/ UTGST
2207 10 -
2207 10 19
2207 10 90 Other
2208 30 11
2208 30 91
2208
2208 70 11 Liquors
2208 70 91 Liquors .................
2208 70 92 Cordials .................
2208 90 -
2208 90 11 Tequila
2208 90 12 Indenatured ethyl alcohol
2208 90 19 Other
2208 90 91 Tequila .................
2208 90 92 Indenatured ethyl alcohol
2208 90 99 Other
2209 00 -
2209 00 10 Brewed vinegar
2209 00 20 Synthetic vinegar
2209 00 90 Other ..................
EXEMPTION NOTIFICATIONS
» 18% IGST or 9% CGST + 9% SGST/ UTGST : Heading No. 2209 : C.T. (Rate) & 1/2017-I.T. (Rate), dated 28-6-
Exemption to Small Taxpayers with annual turnover up to ` 40 lakhs/` 20 lakhs/` 10 lakhs (Threshold Exemption) —
(3% CGST + 3% SGST) on Annual turnover upto ` 50 lakhs when not covered under existing Composition Scheme of Notification No. 14/2019-C.T. —
to the Government, local authority or to a Government entity in relation to an activity entrusted to Panchayat or Municipality is exempted from whole of the CGST
Handicraft goods - Concessional CGST rates for specified handicraft goods when predominantly made by hand — No. 21/2018-C.T. (Rate), dated 26-7-2018.
Exemption to supplies to or by Canteen Stores Department (CSD) — both dated 28-6-2017.
Goods and services received by a TDS deductor from unregistered supplier - Exemption — dated 28-6-2017. CHAPTER
Second hand goods received by registered person from unregistered supplier - Exemption — dated 28-6-2017.
Old and used motor vehicles - Concessional Rate of tax —
Supplies for specified petroleum and other explorations and productions under various Schemes — (Rate), dated 28-6-2017.
Food preparations meant for free distribution under Government program - Concessional Rate of tax — C.T. (Rate), dated 18-10-2017.
Export supplies - Concessional Rate of tax —
Leasing of motor vehicles - Concessional Rate of tax —
Supplies to specialized agency of UNO, Embassies and other specified international organization — (Rate), dated 28-6-2017.
Panchayat - Services and specific functions of Panchayat not to be taken as supply of goods and services —
The above exemptions for CGST also hold good for SGST/UTGST as GST Rates and Exemptions are uniform throughout the country. All the States/UTs have issued similar Exemption Notifications, hence they are not repeated here.
28-6-2017.
to the Government, local authority or to a Government entity in relation to an activity entrusted to Panchayat or Municipality is exempted from whole of the IGST
Exemption to supplies to or by Canteen Store Department (CSD) — both dated 28-6-2017.
Export supplies - Concessional Rate of tax —
Leasing of motor vehicles - Concessional Rate of tax —
Old and used motor vehicles - Concessional Rate of tax —
Food preparations meant for free distribution under Government program - Concessional Rate of tax — I.T. (Rate), dated 18-10-2017.
SEZ - Exemption to import of goods and services by a unit or developer in SEZ —
Skimmed milk powder and concentrated milk - Exemption from tax —
Supplies to specialized agency of UNO, Embassies and other specified international organisation — (Rate), dated 28-6-2017.
Supplies for specified petroleum and other explorations and productions under various Schemes — (Rate), dated 28-6-2017.
Panchayat - Services and specific functions of Panchayat not to be taken as supply of goods and services — 11/2017-I.T. (Rate), dated 28-6-2017.
Exemption to supply of goods by a retail outlet established in the departure area of an international airport, beyond the immigration counters, to an outgoing international tourist, from the whole of the Integrated Tax —
is made by pulverizing almonds in a blender with water and is then strained. As such almond milk neither constitutes any fruit pulp or fruit juice. Therefore, it is not classifiable under Tariff Item 2202 99 20 of Customs Tariff Act,
CHAPTER
1975 but is classifiable under the residual entry in the Tariff Item 2202 99 90 and attract GST rate of 18%. — — 2019 (29) G.S.T.L. C11.
falling under Chapter 22, sub-heading 2203.00 is a food article. — v. - 1992 (57) E.L.T. 373 (Cal.).
— are classifiable under Tariff Item 2202 90 90 of Customs Tariff Act, 1975 not under Tariff Item 2202 10 10 of the said Tariff. — v. — 2019 (366) E.L.T. 74 (Cal.).
containing 92% water, fruit juice, preservatives and added with flavour of lemonade are classifiable under Tariff Item 2202 10 20 of Customs Tariff Act, 1975. However, products those added with other flavours i.e. Orange, Cola, Jeera, etc. are classifiable under Tariff Item 2202 10 90 ibid. — — 2019 (30) G.S.T.L. 496 (A.A.R. - GST).
are covered under HS 2202 99. The said goods attract GST at the rate of 28% and Compensation Cess at the rate of 12% and cover such carbonated beverages that contain carbon dioxide, irrespective of whether the carbon dioxide is added as a preservative, additive, etc. Exclusion for the abovesaid goods has been provided in the entry at S. No. 48 of Schedule II of Notification No. 1/2017-Central Tax (Rate), dated 28th June, 2017, vide Notification No. 12/2022-Central Tax (Rate), dated the 30th December, 2022.
preparations for manufacture of beverages is classifiable under sub-heading 2208.10 of Customs Tariff Act, 1975. — v. 2016 (338) E.L.T. 164 (S.C.).
is classifiable under Heading No. 2201 and supply of same as potable water is eligible for exemption in terms of Entry at Sl. No. 99 of Notification No. 2/2017-Central Tax (Rate). Chennai Water Desalination Ltd., In re [2022] 138 taxmann.com 523 (AAR - Tamil Nadu).
obtained from plant setup to treat effluents of textile dyeing units, which is not subjected to ionization process and thus, contain chlorides, sulphates, bicarbonates, etc., making it suitable only for reuse by dyeing, units, cannot be construed as demineralised water. — [2023] 155 taxmann.com 110 (AAR - Tamilnadu).
manufactured out of orange juice concentrate is classifiable under HSN Code 2202 99 and not under HSN Code 2202 10. — 2019 (28) G.S.T.L. 518 (A.A.R. - GST).
See under CHAPTER 1.
— See under CHAPTER 4.
[2021] 127 taxmann.com 30/87 GST 718/53 GSTL 368 (AAR - Gujarat). merits classification under tariff item 2202 90 30 and rate of tax applicable is 12 per cent. — [2022] 137 taxmann.com 405/91 GST 459 (AAAR - Andhra Pradesh).
[2022] 142 taxmann.com 316 (AAAR - Gujarat).
containing milk”. — [2022] 142 taxmann.com 288/94 GST 792 (AAARGujarat).
is classifiable as ‘beverage containing milk’ under tariff item No. 2202 99 30 and not under Chapter 4 since addition of flavouring agent changes basic characteristic of milk; GST rate of 12 per cent applicable. — [2022] 138 taxmann.com 203 (AAAR - Andhra Pradesh).
manufactured by blending and heating of water, grape juice, sugar, colour and flavouring agents and thereafter carbonated at 20 degree Celsius, is classifiable under Tariff Item 2202 10 90 of Customs Tariff Act, 1975. — — 2020 (32) G.S.T.L. 421 (A.A.R. - GST - T.N.).
— See under CHAPTER 1.
produced by applicant-manufacturer qualifies as goods and merits classification under HSN 2202 99 30 with heading ‘beverages containing milk’ and it attracts GST at 12%. — [2023] 147 taxmann.com 580 (AAR - Tamilnadu).
273 which is a carbonated fruit beverage or fruit drink containing grape fruit juice with added natural and — Kalis [2021] 127 taxmann.com 134/ 87 GST 545/53 GSTL 17 (AAAR - Tamil Nadu). are classifiable under sub-heading 2202.90. 1987 (30) E.L.T. (T24).
— Sweetened dairy drink made with milk, sugar, permissible colouring and artificial/natural flavouring, is classifiable under Tariff Item 2202 99 30 of Customs Tariff Act, 1975. — — 2020 (32) G.S.T.L. 206 (A.A.R. - GST - A.P.).
is classifiable under Tariff Item 2202 99 30 of Customs Tariff Act, 1975. — — 2020 (32) G.S.T.L. 558 (A.A.R. - GST - A.P.).
— See under CHAPTER 1.
merit classification as ‘carbonated beverage of fruit drink’ under tariff heading 2202 9990; GST is applicable @ 28 % along with applicable compensation cess of 12 %. — United Breweries Ltd., In re [2022] 143 taxmann.com 23/67 GSTL 366 (AAR - Karnataka). Based on
dated 26-10-2018.
applicant, is covered under exclusion of exemption entry.
cent.
[2021] 131 taxmann.com 9/88 GST 171 (AAR - Andhra Pradesh). to public in empty unsealed cans is not entitled for exemption from GST. [2020] 116 taxmann.com 270/81 GST 391/35 GSTL 450 (AAR - Karnataka).
[2022] 138 taxmann.com 285 (AAR - Gujarat).
contains caffeine contents, glucose and vitamins, mineral water and aerated waters, etc. hence, appropriately classifiable under Tariff Item 2202 90 90 of Customs Tariff Act, 1975 and not under Tariff Item 2202 10 10 ibid. — v. — 2014 (307) E.L.T. 801 (Tri. - Mumbai).
obtained from effluent water discharged by textile units after separating salt and other chemicals mixed during dyeing and bleaching so as to reuse such treated water again in industry only without getting it discharged in water bodies to pollute same, is classifiable under Heading No. 2201. —
In re — [2023] 155 taxmann.com 111 (AAR - Tamilnadu).
The original/
are the same as those imported by the company at concessional rate. The importer is required to maintain records and should
273A
Based on C.B.I
i.e., are classi[2020] 116 taxmann.com 742/82 GST 10/36 GSTL 560 (AAAR - Tamil Nadu).
— All goods [including aerated waters], containing added sugar or other sweetening matter or flavoured are classifiable under sub-heading 2202 10 and attract 28% GST and 12% Compensation Cess. — Based on — 2017 (3) G.S.T.L. C6.
Laterals/parts to be used solely or
Section Note and Chapter Notes to HSN, shall attract GST as applicable to the respective heading.
—
[2023] 155 taxmann.com 263 (AAR - Tamilnadu).
[2022] 140 taxmann.com 172/67 GSTL 477 (AAAR - Maharashtra).
is classifiable under Heading No. 2201 and eligible for exemption as per Notification No. 2/2017-Central Tax (Rate), as it contains impurities even after treatment and could be reused only in industries. — [2023] 156 taxmann.com 453 (AAR - Tamilnadu).
- Treated sewage water, falling under heading 2201, is exempt under GST. —
obtained from sewage water by conversion process in Sewage Treatment Plant (STP) to make it suitable for industrial use, without addition of any minerals to make it suitable for drinking purposes, is taxable at 18 per cent. — — [2021] 132 taxmann.com 247 (AAR - Maharashtra)/2021 (55) GSTL 209 (AAR-GST-Mah.)
obtained from CETP (classifiable under Chapter 2201) is not eligible for exemption from payment of Tax by virtue of SI. No. 99 of the Exemption Notification No. 02/2017- CT (Rate) dated 28-6-2017 (as amended) but taxable at 18 per cent by virtue of SI. No. 24 of Schedule - III of Notification No. 01/2017- CT (Rate). — — [2023] 148 taxmann.com 255 (AAR - Gujarat).
—The art work for
supply on approval basis can be moved from the place of business of the registered person (artist) to another place within the same State or to a place outside the State on a delivery challan along with the e-way bill wherever applicable and the invoice may be issued at the time of actual supply of art work.
Supplies of the art work from one State to another State will be inter-State supplies and attract integrated tax in terms of section 5 of the Integrated Goods and Services Tax Act, 2017.
art works are sent to the gallery for exhibition and therefore, the same is not a supply. It is only when the buyer selects a particular art work displayed at the gallery, that the actual supply takes place and applicable GST would be payable at the time of such supply.
under Tariff Heading 22029930. [2020] 116 taxmann.com 572/36 GSTL 582 (AAR - Tamil Nadu) temperature sterilized flavoured milk marketed under brand name ‘Britannia Winkin Cow Thick Shake’ being a beverage is not classifiable under Tariff heading ‘0402/0404’ but classifiable under CTH 22029930; Heading 2202 being specific classification for beverages containing milk — — [2021] 132 taxmann.com 249 (AAAR - Tamilnadu)/2022 (56) GSTL 36 (App. AAR-GST-T.N.)
per cent GST. [2021] 130 taxmann.com 72/87 GST 490/54 GSTL 348 (AAR - Tamil Nadu).
— Attention is drawn to the entry at S. No. 99 of Notification No. 2/2017-C.T. (Rate), dated 28-6-2017, by virtue of which water [other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container] falling under HS Code 2201 attracts NIL rate of GST. Therefore, supply of drinking water for public purposes, if it is not supplied in a sealed container, is exempt from GST. — — 2018 (15) G.S.T.L. C17. falls under Chapter 2201, taxable at 18 per cent per entry No. 24 of Schedule-III of Notification No. 01/2017-CT(R). — [2024] 163 taxmann.com 353 (AAR - Gujarat).