Notification No. 43/2019 – Central Tax Explained

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Notification No. 43/2019 - Central Tax: Seeks to amend notification No 14/2019- Central Tax dated 7.3.2019 so as to exclude manufacturers of aerated waters from the purview of composition scheme.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

G.S.R. (E).- In exercise of the powers conferred under the proviso to the sub-section (1) of section 10 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.14/2019-Central Tax , dated the 7^th March, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 196(E), dated the 7^th March, 2019, namely: -

In the said notification, in the table, after Sl. No. 2 and the entries thereto, the following Sl. No. and entries shall be inserted, namely: -

“2A.

2202 10 10

Aerated Water”.

2. This notification shall come into force on the 1^st day of October, 2019.

(Gunjan Kumar Verma)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 43/2019 – Central Tax

Q1: What is Notification No. 43/2019 – Central Tax in simple words?

Answer:
The notification modifies earlier rules to remove manufacturers of aerated waters (HSN 2202 10 10) from the GST Composition Scheme. This means such manufacturers must follow regular GST rules instead of paying a lower Composition tax.
This amendment is issued under Section 10 of the CGST Act, 2017.

Q2: Why were aerated water manufacturers excluded from the GST Composition Scheme?

Answer:
Because aerated beverages fall under luxury/demerit goods and attract 28% GST + cess. Allowing them Composition benefits could reduce government revenue.
So Notification No. 43/2019 – Central Tax ensures proper taxation of such goods.

Q3: From when is Notification No. 43/2019 – Central Tax effective?

Answer:
It became effective on 1 October 2019.
Businesses must comply from that date onwards.

Q4: What is HSN 2202 10 10 mentioned in the notification?

Answer:
HSN 2202 10 10 refers to Aerated Water—which includes soda, carbonated beverages, sparkling waters etc. If your business manufactures any of these, Composition Scheme is not allowed.

Q5: I sell packaged soda in a small shop. Am I excluded too?

Answer:
No 😊
The exclusion applies only to manufacturers, not retailers or traders.
A retail shop selling branded soft drinks can still opt for Composition Scheme (subject to turnover limits).

Q6: What should a manufacturer do after being excluded from the Composition Scheme?

Answer:
You must:
Switch to regular GST registration
Issue tax invoices
Charge GST on sales
File GSTR-1 & GSTR-3B
Maintain proper records
👉 If you need GST registration help: https://finodha.in/online-gst-registration/

Q7: Does Notification No. 43/2019 – Central Tax impact traders of soft drinks?

Answer:
No.
The notification clearly mentions manufacturers only.
Traders/retailers remain eligible if they meet turnover limits.

Q8: What is the turnover limit for Composition Scheme after this notification?

Answer:
Turnover limits remain unchanged:
₹1.5 crore for manufacturers & traders
₹50 lakh for service providers (under Section 10(2A))
Aerated water manufacturers simply cannot apply regardless of turnover.

Q9: What happens if a manufacturer still continues using Composition Scheme after this date?

Answer:
The business may face:
Tax demand + interest
Penalties under Section 73/74 of CGST Act
Compulsory migration to regular GST
👉 Avoid penalties—use Finodha GST Compliance: https://finodha.in/gst-compliance/

Q10: Are fruit juices or non-carbonated drinks also excluded?

Answer:
No.
The exclusion applies ONLY to aerated waters under HSN 2202 10 10—not juices, shakes, or non-carbonated beverages.

Q11: Do I need to apply for cancellation of Composition Scheme after this notification?

Answer:
Yes.
You must file CMP-04 within 7 days of becoming ineligible and switch to the regular scheme.

Q12: Can a new aerated water manufacturer apply for Composition Scheme after 2019?

Answer:
No ❌
Notification No. 43/2019 – Central Tax permanently restricts such manufacturers.

Q13: Does this notification apply to mineral water manufacturers?

Answer:
No.
Mineral water (HSN 2201) is not aerated water, so it remains eligible—unless excluded by other conditions.

Q14: How do I know if my product is classified as aerated water?

Answer:
Check your HSN code based on:
carbonation level
product labelling
ingredients
If it resembles soda/soft drink manufacturing, most likely it falls under 2202 10 10.

Q15: Where can I get expert help to understand GST impact on my beverage business?

Answer:
You can consult Finodha’s experts for:
GST registration
GST filing
Business setup
Compliance audits
👉 https://finodha.in/setup-business/

✅ Conclusion

Notification No. 43/2019 – Central Tax plays a crucial role in ensuring correct GST treatment for aerated water manufacturers. If your business deals with carbonated beverages, you must follow regular GST rules—failure to do so can cause penalties.

👉 Want expert help for GST transition or filing?
Get started with Finodha GST Services: https://finodha.in/gst-compliance/

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