GST Reform 2025: 40% Tax On Cold Drinks, Energy Drinks & Sugary Beverages | Sin Tax Expanded

India’s new GST reforms have introduced a 40% sin tax slab for luxury and harmful products — and for the first time, sugar-loaded drinks like colas, sodas, and energy drinks have joined alcohol and tobacco on the “sin list.” Beverages such as Coca-Cola, Thums Up, Fanta, Sprite, Frooti, Maaza, and Red Bull pack 4–5 teaspoons of sugar per serving—enough to hit an entire day’s sugar limit in just one gulp. Doctors warn this excess sugar fuels fatty liver, belly fat, diabetes, heart disease, and hypertension. India already faces a diabetes epidemic, with over 101 million diagnosed diabetics and another 136 million pre-diabetic adults. With sugar intake fueling this health crisis, the government’s move to tax sweetened drinks at 40% aims to curb consumption and protect public health.