The Tamil Nadu Authority for Advance Ruling found a yeast-fermented ‘non-alcoholic red wine’ is not a 5% fruit-juice drink, but gave no ruling on classification as its alcohol content was not proved.
The Tamil Nadu Authority for Advance Ruling has found that a non-alcoholic grape beverage fermented with yeast cannot be treated as a fruit pulp or fruit juice based drink under HSN 2202 9920 at 5%, but declined to rule on its classification and rate without valid proof of its alcohol content. The Bench of R.V. Pradhamesh Bhanu, Member (CGST), and B. Suseel Kumar, Member (SGST), admitted the questions under Section 97(2)(a) and (b) of the CGST Act, 2017 [In Re: Benz Fishing Baits Pvt. Ltd., 2026-juristway.com-3208-AAR(Tamilnadu)-GST].
The applicant makes ‘Non-alcoholic Red Wine’, sold as ‘Royal Toast’, from black grapes, water, sugar and yeast, fermented for a week to ten days. After GST 2.0, it paid GST at 40% under HSN 2202 9100, but said competitors were paying 5% on similar products under HSN 2202 9920, listed at S.No. 150 of Schedule I to Notification No. 9/2025-CT (R).
The Bench held that the use of yeast, which converts the sugars of the fruit into alcohol, is what distinguishes wine from fruit juice. Citing the definition of wine in the Food Safety and Standards (Alcoholic Beverages) Regulations, 2018, it found the product to be a fermented beverage that “cannot be termed as fruit pulp or fruit juice based drinks”.
Under Chapter Note 3 to Chapter 22, a beverage is non-alcoholic for heading 22.02 only if its alcoholic strength does not exceed 0.5% by volume. The applicant’s 2014 certificate from a Tamil Nadu government food laboratory recorded 2.0% alcohol. The fresh report it filed, dated 28 Aug 2026, came from a private laboratory, which the Bench did not treat as valid evidence. Without valid documentary proof of alcohol content, the Bench held that the correct HSN code and rate could not be determined, and no ruling was given on either question.
2026-juristway.com-3208-AAR(Tamilnadu)-GST
