Supreme Court classifies Rooh Afza as ‘fruit drink’ amid higher tax bracket row

In a significant ruling, the Supreme Court of India has classified Rooh Afza, a popular herbal syrup, as a ‘fruit drink’ amid ongoing debates regarding its taxation. The decision follows a legal challenge concerning the product's classification for tax purposes, which had previously labeled it as a 'non-fruit syrup containing 10% fruit juice.' This classification has implications for the applicable Goods and Services Tax (GST) rate, as products classified as fruit drinks typically fall under a lower tax bracket compared to non-fruit syrups. The Supreme Court's ruling underscores the importance of accurate product categorization in the context of consumer goods and taxation. Rooh Afza, known for its refreshing properties and cultural significance in India, has been a staple in households, especially during the summer months. This ruling not only impacts the producers and retailers of Rooh Afza but also sets a precedent for the classification of similar beverages in the future, potentially influencing the broader market dynamics of fruit-based products in India.