Vijayawada: Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) submitted a representation to Union finance minister and GST Council chairperson Nirmala Sitharaman on issues requiring reconsideration in view of decisions taken in the 56th GST Council meeting.

Hailing the key announcements and the GST 2.0 reforms announced by the Union government, the president of Chambers Potluri Bhasaka Rao stated that the recent reforms have helped the middle class and boosted the consumption across the country.

Some of the key issues mentioned by AP Chambers include reduction of GST rate on fruit pulp-based beverages. Bhaskara Rao mentioned, “Carbonated beverages of fruit drink or carbonated beverages with fruit juice have now been placed under a 40 per cent GST rate (including cess). This classification inadvertently covers a large number of fruit pulp-based beverages manufactured by medium and small-scale industries across India, particularly in agrarian states like Andhra Pradesh, Tamil Nadu, and Maharashtra.

“These products — though mildly aerated — are made from real fruit pulp and natural extracts, supporting farmers, fruit processors, and MSME units engaged in agro-based manufacturing. Keeping them at par with high-caffeine or synthetic drinks such as cola and soda variants not only discourages the consumption of healthier alternatives, but also adversely impacts the agri-processing ecosystem.”

He requested the Union minister that the GST rate on fruit pulp-based aerated beverages be reconsidered and reduced suitably, ideally to 18 percent, in line with other processed food products. This would incentivise the consumption of fruit-based beverages, encourage value addition to agricultural produce, and promote MSME growth.

Referring to the denial of Input Tax Credit to the hospitality sector under GST 2.0, Bhaskara Rao mentioned that under GST 2.0, the GST rate for rooms with tariff up to Rs 7,500 has been reduced from 12 percent to 5 percent. But the corresponding withdrawal of Input Tax Credit (ITC) has created severe financial hardship to hoteliers and tourism operators.