GST Rate & HSN Code 2201 for Beverages, spirits and vinegar

HSN Code 2201 covers waters, including natural or artificial mineral waters and aerated waters, without added sugar or other sweetening agents. The applicable GST rate depends on the specific product category classified under this HSN code.

GST Rate & HSN Code 2201 for Beverages, spirits and vinegarGST on beverages under Chapter 22 depends on the nature of the drink, but for waters covered under HSN Code 2201 the GST slab is well-defined and important for bottled water, mineral water, and ice producers.​

What is HSN Code 2201?

HSN Code 2201 is mainly used for water-based beverages that do not contain added sugar, sweeteners or flavours. Businesses must select the correct HSN classification while generating GST invoices to ensure accurate tax reporting.

• Packaged drinking water (like 20-litre jars)
• Natural and artificial mineral water
• Aerated water without added sugar/flavour
• Ice and snow for food service or industrial use

Although the user’s previous topic referred to the coconuts HSN code, that falls under 0801, while beverages under discussion here are strictly classified under Chapter 22 with their own HSN Code 2201.​

Products Covered Under HSN Code 2201

GST Rates & Exemptions for HSN Code 2201

Different items under HSN Code 2201 attract different GST rates, mainly 0%, 5%, 12%, or 18%.​Key rate points:

• Drinking water packed in 20-litre bottles – 12% GST
• Mineral and aerated waters (sealed containers, no sugar/flavour) – 18% GST
• Ice and snow – 5% GST
• Plain water other than aerated/mineral/distilled/medicinal/ionic/battery/de-mineralized and not sold in sealed containers – 0% GST

This structure ensures basic unprocessed water remains tax-free, while processed and packaged water products are taxed.​

Table Notes

• Always differentiate between “plain non-sealed water” (0% GST) and “packed or processed water” under HSN Code 2201 (taxable).​
• The same HSN 2201 applies to both mineral and aerated water without added sugar; once sugar or flavour is added, classification generally shifts to 2202 with higher GST (usually 28%).​

HSN Code 2201 vs Other Beverage HSN Codes

GST Rates Applicable Under 2201

​How to Mention HSN Code 2201 on GST Invoice

Businesses selling products classified under HSN Code 2201 should mention the correct HSN code on GST invoices along with product description, quantity, taxable value and applicable GST rate.

What’s Included in HSN 2201 Beverages?

Under HSN Code 2201, the following beverages and water-based items are included:

• Bottled water, 20-litre jars, dispenser jars
• Mineral and aerated water (without sugar or flavour)
• Ice (food-grade and industrial) and snow for cooling or food uses
• Basic, non-processed, non-branded water when supplied in certain forms (0% GST)

For other beverages, spirits, and vinegar within Chapter 22 (like soft drinks, non-alcoholic drinks, beer, wine, spirits, and vinegar), different HSN codes such as 2202, 2203–2208, and 2209 apply, with GST rates ranging from 0% to 28%.​

Key Exemptions Under GST for HSN 2201

Major exemptions linked to HSN Code 2201 include:

• Water that is not aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized, and not sold in sealed containers – 0% GST.​
• Non-alcoholic toddy and neera including date and palm neera, if supplied in traditional non-branded form – also 0% GST under 2201.​

Tender coconut water and other drinks are covered under different HSN codes (2202 or 22029990), with 0%, 12%, or 18–28% GST depending on packing and branding.​

Input Tax Credit (ITC) Rules for Beverages under 2201

Businesses dealing in water products under HSN Code 2201 can claim ITC on:

• GST charged on purchase of packaged water for resale (distributors, retailers).
• Plant and machinery used for water purification, bottling, and ice-making when output supply is taxable.
• Related input services like transport, warehousing, and bottling services.​

ITC cannot be claimed on:

• Supplies that are exempt (like loose unbranded water at 0% GST).
• Packaged drinking water or beverages used for personal consumption or employee beverages without meeting ITC conditions.​

GST on Water & Beverage Billing: Practical Scenarios

• A distributor sells 20-litre jars of drinking water, applying 12% GST under HSN 2201, and can claim ITC on plant and input costs.​
• A restaurant bills branded mineral water bottles at 18% GST (22011010) separately on invoices, ensuring clarity for ITC.​
• An ice manufacturer invoices ice blocks to hotels at 5% GST under 22019010, while non-branded loose water for kitchens remains exempt.​

Common Mistakes in Beverages GST Classification

• Applying 18% GST to plain unsealed potable water that should be 0% GST.​
• Classifying sweetened/ flavoured soft drinks under 2201 instead of 2202, which attracts 28% GST.​
• Missing HSN codes or using a generic “beverages HSN code” without specifying sub-code like 22011010 or 22019010, which can cause ITC disputes.​

Also check -

GST Rates and HSN Code 0801 for Coconuts, Brazil Nuts, Cashew Nuts

FAQs: HSN Code 2201 & Beverages GST

What is HSN Code 2201?

HSN Code 2201 is used for waters, including natural or artificial mineral waters and aerated waters without added sugar or flavours, as well as ice and snow.

What is the standard GST rate for HSN 2201?

The usual GST rate is 18% for mineral and aerated water, 12% for 20-litre packed drinking water, and 5% for ice and snow, while basic unsealed water is exempt (0%).​

Can ITC be claimed on packaged drinking water?

Yes, ITC is available when packaged water is purchased for further taxable supply or business use and is invoiced with the correct HSN code 2201 and GST rate.​

How does HSN Code 2201 relate to other beverages?

2201 is specific to water and ice; other non-alcoholic beverages (such as soft drinks, juices, and milk beverages) use HSN 2202, while alcoholic beverages and vinegar use 2203–2209, each with its own GST rate.

What does HSN Code 2201 include?

HSN Code 2201 covers waters including natural or artificial mineral waters and aerated waters without added sugar or flavouring.

Is mineral water covered under HSN Code 2201?

Yes, mineral water products that meet the classification criteria are covered under HSN Code 2201.

What is the GST rate for HSN Code 2201?

The GST rate depends on the exact product classification under HSN 2201 and applicable GST notifications.

Is HSN Code mandatory on GST invoices?

Businesses meeting GST invoice requirements need to mention applicable HSN codes based on their turnover and compliance rules.