Mumbai, Sept. 2 -- The Confederation of All India Traders (CAIT), a body that represents more than eight crore traders and 40,000 trade associations, has made a formal appeal to the finance ministry seeking a reduction in the tax on carbonated beverages from the current 40% (28% GST plus 12% compensation cess) to 18%.

India is set to announce lower GST rates this week. The GST Council, chaired by finance minister Nirmala Sitharaman, is expected to meet on 3 and 4 September to discuss moving to a two-slab structure of 5% and 18%.

The appeal comes in the wake of the prime minister's announcement of a "new generation of GST reforms" that promises to reduce taxes on everyday items.

The high tax on carbonated drinks puts significant strain ...